News / Economy

OPEC Joins US in Predicting Stronger 2014 Oil Demand

FILE - A general view shows an oil refinery in Zawia, 55km west of Tripoli, Libya.FILE - A general view shows an oil refinery in Zawia, 55km west of Tripoli, Libya.
x
FILE - A general view shows an oil refinery in Zawia, 55km west of Tripoli, Libya.
FILE - A general view shows an oil refinery in Zawia, 55km west of Tripoli, Libya.
Reuters
— World oil demand will rise slightly more than expected in 2014, OPEC said on Wednesday, becoming the second major forecaster this week to predict higher fuel use as economic growth picks up in Europe and the United States.

The Organization of the Petroleum Exporting Countries, in a monthly report, said global demand will rise by 1.09 million barrels per day (bpd) this year, up about 40,000 bpd from its previous forecast. The group, which pumps a third of the world's oil, also sees potential for further rises.

“Given the improvement in OECD oil demand, the likelihood for upward adjustments for world oil demand growth in 2014 is currently higher than existing projections,” said the report by economists at OPEC's Vienna headquarters.

OPEC's report comes a day after the U.S. government's Energy Information Administration raised its 2014 world oil demand growth forecast by a similar increment. Oil prices edged higher after it was released, with Brent crude trading near $109 a barrel.

While the bulk of the growth in global oil demand continues to come from China and the Middle East, OPEC was more upbeat about the prospects for further fuel use this year in established economies.

OPEC sees a contraction in European demand - in the doldrums for years due to recession - easing in 2014, and said  preliminary figures for December 2013 and January 2014 indicated strong demand in top consumer the United States.

“The potential of the forecast for OECD oil demand leans to the upside as the improving economic conditions in the U.S. and Europe may turn out better than expected,” OPEC said.

“For the non-OECD countries, risks are skewed to the downside due to fiscal and monetary issues.”

According to secondary sources cited by the report, OPEC raised its own output to 29.71 million bpd in January, as a partial recovery in Libyan shipments - disrupted for months by unrest - was offset by cutbacks in top exporter Saudi Arabia.

But the stronger global demand outlook is not translating yet into higher demand for OPEC oil, as rising supplies including of U.S. shale oil are eroding its market share in 2014.

OPEC raised its estimate of the amount of crude non-member countries are expected to produce this year to 54.14 million bpd, up about 50,000 bpd from the previous estimate.

As a result, OPEC expects demand for the crude pumped by its 12 members to average 29.60 million bd, virtually unchanged and suggesting inventories will build up should the group keep pumping at January's rate.

Another closely watched oil demand forecast is due on Thursday from the International Energy Agency, adviser to industrialized countries.

You May Like

Video On the Scene: In Gaza, Darkness Brings Dread and Death

Palestinians fear nighttime raids, many feel abandoned by outside world, VOA's Scott Bobb reports More

African Small Farmers Could Be Key to Ending Food Insecurity

Experts say providing access to microloans, crop insurance, better storage facilities, irrigation, road systems and market information could enable greater production More

University of Michigan Wins Solar Car Race

Squad guided its student-designed solar-powered vehicle to fifth consecutive time victory in eight-day bi-annual American Solar Challenge More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Vietnamese Staging Chinese Product Boycott After Oil Rig Spati
X
Reasey Poch
July 28, 2014 7:18 PM
China recently pulled an oil rig from an area of the disputed South China Sea that Vietnam also claims. Despite the action, the incident has had a lingering effect on consumers in Vietnam. VOA's Reasey Poch reports from Hanoi on an effort to boycott Chinese products.
Video

Video Vietnamese Staging Chinese Product Boycott After Oil Rig Spat

China recently pulled an oil rig from an area of the disputed South China Sea that Vietnam also claims. Despite the action, the incident has had a lingering effect on consumers in Vietnam. VOA's Reasey Poch reports from Hanoi on an effort to boycott Chinese products.
Video

Video ESA Spacecraft to Land on a Comet

After a long flight through deep space, a European Space Agency probe is finally approaching its target -- a comet millions of kilometers away from earth. Scientists say the mission may lead to some startling discoveries about the origins of the water on earth. VOA’s George Putic has more.
Video

Video Young Africans Arrive in US for Leadership Program

President Barack Obama's Young African Leadership Initiative has brought hundreds of young Africans to the United States for a six-week program aimed at building their knowledge and skills in fields such as public administration and business. Out of the 50,000 young Africans who applied for the program, just one percent was accepted. VOA's Laurel Bowman caught up with some of those who made the cut and has this report.
Video

Video In Honduras, Amnesty Rumors Fuel US Migration Surges

False rumors in Central America are fueling the current surge of undocumented young people being apprehended at the U.S. border. The inaccurate claims suggest the U.S. will give amnesty to young migrants from the region. As VOA's Brian Padden reports from Honduras, these rumors trace back to President Obama's 2012 executive order to halt deportations for some young undocumented immigrants already living in the United States.
Video

Video Students in Business for Themselves

They're only high school students, but they are making accessories for shoes, fabricating backpacks and doing product photography - all through their own businesses. It's the result of a partnership between a non-profit organization that teaches entrepreneurship and their schools. VOA's Mike O'Sullivan and Deyane Moses met the budding entrepreneurs near Los Angeles.
Video

Video Astronauts Train in Underwater Lab

In the world’s only underwater laboratory, four U.S. astronauts train for a planned visit to an asteroid. The lab - called Aquarius- is located five kilometers off Key Largo, in southern Florida. Living in close quarters and making excursions only into the surrounding ocean, they try to simulate the daily routine of a crew that will someday travel to collect samples of a rock orbiting far away from earth. VOA’s George Putic has more.

AppleAndroid

World Currencies

EUR
USD
0.7305
JPY
USD
101.53
GBP
USD
0.5830
CAD
USD
1.0656
INR
USD
60.075

Rates may not be current.