OPEC sees increase oil 2012 oil demand

VIENNA, July 13 (UPI) -- An expanding global economy is expected to increase the demand for oil by 1.32 million barrels per day in 2012, OPEC said in its monthly market report.

The Organization of the Petroleum Exporting Countries in its July monthly oil report said it expected the global economy to expand from 3.9 percent in 2011 to 4.1 percent in 2012. Oil demand, therefore, is expected to increase from 88.18 million barrels per day to 89.5 million bpd in 2012.

"The disruption in nuclear power generation (from the March earthquake) in Japan could also increase oil consumption in the coming year," the cartel said.

OPEC said much the demand for oil would come from China and economies in Asia. Production from non-OPEC countries, meanwhile, could increase 680,000 bpd to 53.6 million bpd in 2012.

The International Energy Agency in June called on its members to release oil from strategic reserves to offset the decline in production from war-torn Libya.

Economists had warned that high energy prices could undermine economic recovery. OPEC during its last regular meeting in June kept its official production quotas set in 2008 in place.

"The most influencing factor (in global oil demand) is the fate of the U.S. economy for the next 12 months," the OPEC report said. "U.S. oil demand has been in the negative since May, causing year-to-date total U.S. oil demand growth to become almost flat."