OPEC raises 'call' on its own oil for 2006 to 28.62 mil b/d

London (Platts)--17May2006

OPEC cut its forecast for world oil demand growth this year on Wednesday,
saying that high prices were contributing to a slowdown in incremental demand
in developed countries.
In its latest monthly oil market report, OPEC also cut its forecast for
non-OPEC oil production this year, as a result raising the 'call' on its own
crude output.
OPEC now expects world oil demand to average 84.6 million b/d in 2006, up
1.38 million b/d from 83.22 million b/d in 2005. The cartel had previously
been predicting demand growth of 1.43 million b/d this year.
"The largest share of the increase in world oil demand growth will come
mainly from the developing world, mostly due to the strong economic growth,"
the OPEC report said.
"However, the high oil prices and the removal of the fuel subsidies are
expected to negatively impact oil demand, especially in South-East Asia," it
added.
On the supply side, OPEC now expects non-OPEC supply to grow by 1.34
million b/d to reach an average of 51.48 million b/d in 2006, down from a
previous projection of 51.54 million b/d.
The adjustment to non-OPEC forecasts reflects first quarter data from a
number of countries, as well as lower than expected growth in Canada, Angola
and Sudan, OPEC said.
The 'call' on OPEC crude resulting from the difference between expected
demand and non-OPEC supply is seen averaging 28.62 million b/d this year, OPEC
said, up from a previous projection of 28.5 million b/d.
This call is well below the cartel's current output, which it reported as
29.798 million b/d in April according to data based on secondary sources, up
164,000 b/d from 29.634 million b/d in March.

For more OPEC news, visit Platts OPEC Guide at
http://www.platts.com/Oil/Resources/News%20Features/opec/index.xml


 

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