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OPEC holds world demand estimate steady
AFP
VIENNA
Petroleumworld.com 06 15 07OPEC held steady its estimate of world demand for oil this year in a monthly report released Thursday, and brushed aside calls from consuming countries that it boost supply in a bid to lower prices.
"Market fundamentals do not indicate that additional supply is necessary at this time," said the cartel, although it added that it "stands ready to relieve any emerging tightness in the crude oil market".
The Organization of Petroleum Exporting Countries said that demand in the United States had progressed by 2.3 percent in May due to a heavy demand for petrol (gasoline).
OPEC also said it expected global demand for oil to increase by 1.5 percent to 85.6 million barrels per day in 2007, the same estimate as in recent months.
The International Energy Agency has pressured OPEC to pump more crude in order to help trim rising oil prices.
Meanwhile, the cartel forecast world economic growth of 4.9 percent this year, "slightly stronger than the forecast for the previous year particularly after a upward revision for the European Union, China, India and Russia".
However, it dropped its growth forecast for the United States by 0.1 percentage point to 2.1 percent.
It put the robust demand for Middle East oil down to strong demand in the construction and petrochemicals industries, and pointed to "robust economic activities in India."
It also forecast high demand from China for oil products in the second quarter at 7.8 million barrels a day.
Commercial stocks of oil in the United States increased by nearly 22 million barrels in May, OPEC said, the biggest increase since last September, standing in late May at 1,007 billion barrels, or a surplus of 10 million barrels compared with its five-year average, according to the report.
In Algeria, Energy Minister Chakib Khelil added his voice to those speaking out against an increase in OPEC oil supplies.
"We also think that an increase in production is not necessary and, as well, that it will not give the anticipated results," Khelil said.
AFP 14 1519 GMT 06 07
Copyright© 2007 AFP. All Rights Reserved.
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