The Organization of Petroleum Exporting Countries (OPEC) in its monthly report has revised downwards its forecast for world oil demand in 2012 saying it would now reach 88.87mn bpd, down from its previous forecast of 89.01 million bpd.
Crude oil production
"The adjustment reflects slowing growth in the OECD, which is expected to have spillover effects for China and India, and hence impact oil consumption over the coming year," OPEC said.
For 2011, demand remained virtually unchanged at 87.80mn bpd, compared to 87.81mn bpd in OPEC's last monthly report in November.
Total OPEC crude oil production increased by 0.56 mb/d in November compared to the previous month to average 30.37 mn bpd, according to secondary sources.
Uncertain outlook
Crude oil output experienced significant increases from Libya, Saudi Arabia and Iraq while crude production from the UAE and Algeria decreased in November compared to the previous month.
Looking ahead, OPEC noted: "Slowing economic growth and the uncertain outlook for the global economy in the coming year highlight increasing risks facing the oil market in 2012."
OPEC ministers have gathered in Vienna for the cartel meeting today (Dec 14th) where they will decide whether to change production quotas.
