LONDON, (Reuters) – Europe’s debt crisis and an oil price rally are the biggest threats to global oil demand this year, OPEC said on Friday while adding it was still pumping above its target despite a slide in Iranian production.
World oil demand will rise by 900,000 barrels per day this year, OPEC said its monthly oil market report, unchanged from its last month estimate.
“Although U.S. economic data points toward a better performance, the situation in Europe along with higher oil prices has resulted in considerable uncertainties on the future oil demand for the remainder of the year,” OPEC said.
The Organization of the Petroleum Exporting Countries had cut its forecasts for world oil demand growth last month on fears that a struggling economic recovery in developed economies could offset strong demand from China and India.
OPEC, the source of more than a third of the world’s oil, said that the slower pace of economic growth in the OECD was crimping demand and adding more uncertainty to potential consumption growth.