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VIENNA, AUSTRIA - THE Organisations of Petroleum Exporting (Opec) on Thursday downgraded slightly its 2008 estimate of growth in world oil demand, as high prices and slower economic growth brake demand in major industrialised countries and the United States in particular.
Global oil demand was now projected to grow by 1.35 per cent in 2008, compared with the previous estimate of 1.4 per cent, the Opec countries said in its May monthly report.
'World oil demand growth in 2008 is forecast at 1.2 million barrels per day (bpd) to average 86.95 million bpd, representing a minor downward revision from last month,' Opec said.
While the slowing world economy and mild winter weighed on demand in industrialised countries belonging to the Organisation for Economic Coooperation and Development (OECD), oil demand remained strong in non-OECD countries, Opec said.
'As expected, world oil demand grew mostly in the non-OECD regions,' the report said.
'OECD oil demand was very weak, although winter product demand improved across Europe. US oil consumption declined sharply, due to both the slowing economy and warm winter weather.'
With the winter ending in the northern hemisphere, 'oil demand growth will follow a slow consumption cycle in the second quarter', Opec predicted.
'Moreover, this year's summer driving season is not likely to show its normal annual growth due to the anticipated weaker gasoline demand in the US.' -- AFP
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