This year's global oil demand would be lower than previously expected, in line with downward revisions of global economic growth forecasts, the Organization of Petroleum Exporting Countries (OPEC) said in a market report on Thursday.
Demand is expected to grow by 1.07 per cent, instead of last month's prediction of 1.21 per cent. The cartel lowered the average demand outlook for 2012 by 140,000 barrels per day (bpd) to 88.76 million bpd.
“Worries about the U.S. economy, along with the EU debt problem, are adding more uncertainty to world oil needs over the next 12 months,” the report said.
“Firming retail petroleum prices are expected to have a negative impact on oil demand across the globe.” The 12-country group raised its total oil output by 56,000 bpd last month to 30.9 million bpd, as Libya continued to bring back its production to pre-civil war levels. OPEC's oil price rose to 115.18 dollars per barrel on Wednesday, surpassing the 115-mark for the first time since May following a recent attack on a Nigerian pipeline, mounting violence in Syria and concerns over the stand-off between the West and OPEC heavyweight Iran.