OPEC sees decline in oil demand

Jan. 16, 2013 at 9:04 AM
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VIENNA, Jan. 16 (UPI) -- The Organization of Petroleum Exporting Countries said it expected demand for its crude oil to fall in 2013 though world economic growth remains static.

OPEC, in its monthly market report for January, said it estimated the world economy grew by 3 percent in 2012 and should grow another 0.2 percent this year. That's unchanged from the previous month's report.

The World Bank this week said it estimated the global economy grew by 2.3 percent last year, but expected an increase more in line with OPEC figures by 2015.

For major economies, the oil cartel said Japan and the eurozone may experience some modest growth in the coming year. For the United States, however, OPEC said growth expectations for 2013 are down 0.3 percent to 2.0 percent.

Fitch Ratings this week said it expected U.S. lawmakers to raise the debt ceiling despite protracted fiscal debates in Washington. The ratings agency warned it would review the U.S. credit rating should Congress fail to reach an agreement, however.

For oil, the OPEC cartel said global demand is unchanged from its previous expectation of 800,000 barrels of oil per day.

"This year, the impact of economic turbulence on oil demand should be considerably milder than in previous years," the cartel stated.

Oil supply growth is expected from North American producers. Demand for OPEC crude, however, is down 400,000 bpd from the previous year.

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