OPEC forecasts "growing" oil demand despite recent price dips
Agence France-Presse reported Tuesday that the Organization of Petroleum Exporting Countries (OPEC) has increased its 2013 forecast for oil demand growth based on " expectations of better-than-expected improvement" within developed country economies.
OPEC's November monthly report projected that demand would increase slightly from October to 89.78 million barrels per day (mbpd). The slight 0.04 mbpd increase is allegedly a result of increase demand in Europe and North America, while non-OECD countries' demand has slightly declined.
OPEC expects total demand to reach approximately 90.78 mbpd next year. US economic progress-even after the recent government shutdown-has been better than expected, with OPEC now projecting a global economic forecast for 2013 at 2.9 percent. Next year, it projects growth at a 3.5 percent rate.
OPEC provides approximately 35 percent of the world's oil supply.
Coinciding with OPEC's announcement was Tuesday's oil price dip below $95 a barrel. Benchmark US crude for December delivery was also reportedly down to 43 cents to $94.71 a barrel on the New York Mercantile Exchange's electronic trading. The international benchmark Brent crude was up 28 percents to $106.69 a barrel Tuesday on London's ICE exchange.