MercoPress. South Atlantic News Agency

OPEC optimistic about global recovery anticipates stronger demand for oil

The cartel currently supplies the world with 28.9 million barrels per day

The Organization of the Petroleum Exporting Countries (OPEC) has predicted for next year an increase in global demand for oil driven by a global economic recovery. The 12-nation cartel said in its latest monthly report that 2010 world demand for crude would be 84.93 million barrels per day for an increase of 0.83%.

The increase would mainly be driven by a global economic recovery, OPEC said in its report which forecast global economy to grow by 2.7% in 2010 as compared with a 1.2% contraction this year.

OPEC estimates are based on the Organization for Economic Co-operation and Development country members’ average economic growth of 1% while the US economy is expected to expand 1.3%.

Both the OECD and US economies posted negative growths this year of 3.9% and 2.7% respectively. The Euro area is also expected to improve on its negative growth of 4.1% this year to zero next year.

OPEC is expecting a 3.75% crude oil demand increase from China and 3.1% from Middle East countries. North America on the other hand forecasts its demand for crude to increase next year by 0.9%. At the other end of the spectrum Western Europe and Japan will see their demands for fossil fuel continue to fall, with a possible decline of 1.25%.

It is in this context OPEC forecasts the increase in world demand for oil from the cartel to jump to 28.39 million barrels per day. OPEC's daily production in September reached 28.9 million barrels per day, 43,000 barrels more than in August.

Non OPEC oil production next year is also set to increase by 350,000 barrels per day with Brazil, Azerbaijan, Canada and Kazakhstan expanding production significantly.

Finally OPEC said in the report that the 2009 global demand for crude oil would fall to 84.24 million barrels per day, which is 1.65% drop compared with last year.