By Daniel Adugbo
The Organization of the Petroleum Exporting Countries (OPEC) on Thursday projected higher demand for its crude in 2018 due to rising global consumption.
OPEC in its monthly report said the world would need around 32.42 million barrels per day (bpd) of its oil next year, up 220,000 bpd from the previous forecast.
The cartel also said oil markets in Europe and West Africa had firmed and that the recent increase in the price of Brent crude oil indicated the glut was easing.
Just as OPEC raised its forecasts for global oil demand growth in 2017 and 2018, saying consumption would rise next year, It was also upbeat about the global economy.
“World economic growth has gained momentum,” OPEC said. “With the ongoing growth momentum and an expected continued dynamic in second-half 2017, there is still some room to the upside.”
The report showed the 14-country group’s oil output in July rose above the demand forecast.
According to the report, crude oil output increased mostly in Libya, Nigeria two members exempt from the OPEC’s output cuts and Saudi Arabia, while production showed declines in Iraq, Angola and Venezuela.
Supply is rising outside the group as well, although not quite as fast as OPEC thought.