The Organization of Petroleum Exporting Countries boosted its 2012 demand estimate for its crude for a second month as it lowered estimates for supplies from outside the group.
OPEC, which meets tomorrow in Vienna, will need to produce 30.1 million barrels a day to balance global crude supply and demand, the group’s secretariat said today in its monthly report. That’s up 100,000 barrels a day from its forecast last month. OPEC cut its global demand forecast for 2012.
“Economic turbulence is shaking oil demand as the slowdown hits manufacturing activities worldwide,” OPEC said.
The group, which failed to reach an agreement on production quotas in June, will use its demand forecast for next year as a basis for discussion on output at the meeting, a person with knowledge of OPEC’s policy said on Dec. 6. OPEC will need to pump 30.2 million barrels a day next year, the International Energy Agency said in its monthly report today. That marked a downward revision of 200,000 barrels from its November forecast.
Supply from outside the group is projected at 53.1 million barrels a day, a downward revision of 150,000 barrels a day from last month. The U.S., Brazil, Canada, Colombia and Russia are expected to boost output next year while declines are forecast in Syria, Norway and Mexico, according to the report.
Oil demand will average 88.9 million barrels a day next year, about 100,000 barrels less than its previous forecast, as demand growth in China and India slows, it said. Consumption will average 87.8 million barrels this year, according to OPEC.
OPEC’s production including Iraq averaged 30.37 million barrels a day in November, compared with 29.81 million the previous month, the report showed.
The group’s members are Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates and Venezuela. Iraq is exempt from quotas.