OPEC sees strong global oil demand in 2015

By FXStreet FXStreet (Mumbai) – In its fresh monthly report published on Monday, OPEC has upwardly revised its world oil demand outlook for 2015, but growth of non-OPEC oil supply will be slightly slower.

The cartel now projects that global oil demand will grow by around 1.46 mb/d in 2015 after an upward revision of around 84 tb/d, mainly to reflect better-than-expected data from the OECD region. However, in the following year the pace of growth is likely to slow.

OPEC noted in its report, “In 2016, world oil demand is anticipated to rise by 1.29 mb/d after a downward revision of around 50 tb/d.”

While “In 2016, non-OPEC oil supply is expected to increase slightly by 0.16 mb/d, a downward revision of 110 tb/d from the previous report.”

OPEC pointed out that its Reference Basket fell below $50/b in August to average $45.46/b, due mainly to sell-offs amid enduring oversupply and Chinese economic turbulence.

Besides, the oil cartel also slashed its economic growth forecast to 3.1% for 2015 and to 3.4% for 2016 from 3.2% and 3.5%, respectively.

In the OECD bloc of countries, the economy will grow by 2.0% in 2015 and 2.1% in 2016, unchanged from the previous forecasts.

However, OPEC pointed to increased challenges …read more

Source:: FX Street