Oil Prices Rise After OPEC Trims Demand Forecast

AFP reported that oil prices wavered after OPEC said it expects no growth in demand for 2012 and cut its estimate for world oil demand for 2012.

As quoted in the market news:

OPEC said Tuesday that a weak world economy was taking its toll on oil demand, especially in developed nations. When the economy slows, demand for oil falls because drivers buy less gasoline, shippers buy less diesel and jet fuel, and travelers stay home.

The Organization of Petroleum Exporting Countries said demand will be about 180,000 barrels per day less than it forecast for 2011 and 100,000 barrels per day less than forecast for 2012. That would still be a record for world oil consumption, though, at just over 88 million barrels per day, for 2011. Oil demand in developed nations has been flat or declining, but demand from the developing economies of Asia has been pushing world oil consumption higher. OPEC said policies in China and India to curb growing oil consumption will lead to lower demand in those countries than originally forecast.

Click here to read the full AFP report