London (Platts)--18Jul2005

OPEC on Monday cut a forecast for growth in global oil demand in 2005 because
of slowing economies and said growth in oil consumption would slow next year,
a sign record oil prices are hurting demand. 

Oil use in 2005 will rise by 1.62-mil b/d, 150,000 b/d less than expected last
month, OPEC said in its July Oil Market Report. OPEC forecast world demand
would rise by 1.5-mil b/d next year and said measures such as fuel
substitution pointed to "downward risks" for the forecast. "World oil demand
growth in 2005 has been revised down by 0.15-mil b/d from the last report due
to a slowdown in economic activity in some regions," the report said.
"Sustained robust international oil prices seem to have begun to erode
demand." 

The outlook for 2006 indicates that demand for OPEC oil will rise by just
100,000 b/d to 29-mil b/d. OPEC also forecast non-OPEC oil supply would rise
in 2006 by 1.08-mil b/d, less than the 1.4-mil b/d expected by the
International Energy Agency. OPEC members pumped 30.01-mil b/d in June, up
90,000 b/d from May, the report said.

Read more about OPEC in Platts Guide
http://www.platts.com/Oil/Resources/News%20Features/opec/index.xml

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