Due to various factors such as; the continuing economic crisis in Europe; the delicate situation in Iran and the uncertainty over its oil supplies; the economic worries currently being experienced by, and still facing, the US; and the general high prices of retail petroleum, the Paris-based agency, the Organisation of the Petroleum Exporting Countries (OPEC), have predicted that world oil demand will slow in 2012. In a monthly report the forecast for overall growth in demand has been cut by 120,000 barrels per day (bpd).
The report stated, "Worries about the US economy, along with the EU debt problem, are adding more uncertainty to world oil needs over the next 12 months. Firming retail petroleum prices are expected to have a negative impact on oil demand across the globe."
The report also included figures claiming that overall crude oil production for January was at 30.9 million bpd, the highest since October 2008 and 900,000 bpd more than targeted back in December.
However the reliability of this report can be called into question following the release of another oil forecasting report released in Tuesday by the US Energy Information Administration, which increased the predicted global oil demand by 50,000 bpd.
By. Charles Kennedy of Oilprice.com
Charles is a writer for Oilprice.com