OPEC Warn Slow Recovery In 2010

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OPEC Warn Slow Recovery In 2010

Thursday, 11 February 2010 10:13

Vienna - OPEC oil producers cartel, Wednesday, maintaining moderate growth projections for world oil demand this year, but warned that the slow economic recovery is the obscure hope.
"Slow recovery in world economy in 2010 is putting pressure on oil demand," Organization of Petroleum Exporting Countries said in a report in February.

"As a result, U.S. demand is a key uncertainty for this year. Non-OECD area will be the only contributors to global demand growth in 2010."

World oil demand in 2010 is estimated to grow 0.8 million barrels per day (bpd) to average 85.1 million barrels per day "in line with previous estimates," the report said.

"Global recovery goes fast ... but the strength of progress in 2010 is still uncertain and uneven regional," OPEC found.

That's especially the uncertainty about the U.S. economic recovery measures which "creates a risk of falling trend in the country's oil demand this year."

Cold weather had increased demand for heating oil and fuel oil, but the decline in demand for diesel and gasoline resulted in negative growth in January.

An anticipated increase of about 1.0 percent of U.S. oil demand this year "may not manifest itself."

Indeed, there are "some problems" to the U.S. demand growth, the main risk of the U.S. economic recovery.

China's economic growth strong last year contributed to "moderate increase in oil demand," the cartel continued.

And this year, China's oil demand is forecast to grow 4.5 percent.

"However, the government wants nrgara limit the use of energy, an aim which is inserted in a five-year plan now. However, slower-than-expected global economic growth could affect China's exports and industrial production, reducing the need for oil."

In addition, the internal measures to slow the economy can also affect oil demand in China.

At the same time, the positive signal - like a strong projected growth in new car sales in China - appears to support the growth of oil demand this year.

"Given the significant contribution of the United States and China, economic growth and oil consumption, the economy and uncertainty in the country demand will continue to have significant impact on the world economy and oil market," OPEC said.

"Therefore, continuous development must be monitored closely in the months ahead." | antaranews.com | tenderoffer.biz |