World oil demand to grow 1.3 mb/d in 2008

30 Jan '08

3 min read

Euro-zone data also point to further slowdown, accompanied by lower consumer and business confidence and mounting inflation, while Japanese economic prospects have dimmed with consumer demand expected to stagnate amid falling wages and rising prices.

Cold weather has underpinned oil demand in the Northern Hemisphere. However, weather in the Pacific has been mild, weakening kerosene demand. World oil demand in 4Q07 followed normally high winter seasonality, especially in the OECD, reaching 1.8 mb/d. For the year, world oil demand growth is estimated at 1.2 mb/d or 1.4%.

In 2008, world oil demand is forecast to increase by 1.3 mb/d to average 87.1 mb/d. The effect of higher oil prices on consumers might have a moderate impact, especially in the OECD.

However, the same effect is diluted elsewhere especially in regions in which price subsidies shield consumers, such as China, India, and OPEC Member Countries. Given the cold weather in the first quarter, North America is forecast to grow by 0.33 mb/d pushing incremental world oil demand to 1.5 mb/d y-o-y in the first quarter.

Organization of the Petroleum Exporting Countries

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