Global demand for oil to grow by 1.2 mbd in '17 - OPEC

VIENNA, Feb 13 (KUNA) -- The global demand for oil would rise by 1.2 million barrels a day (mb/d) in 2017 backed by a reviving global economy and expanding petrochemical sectors, the Organization of Petroleum Exporting Countries (OPEC) projected Monday.
"In 2017, oil demand growth is assumed to remain healthy with potential growth estimated at 1.2 mb/d, well above the 10-year average of one mb/d," OPEC stated in its monthly oil market report.
The report detailed several key drivers for growth of oil demand next year.
"Firstly, global economic activities are anticipated to rise by around 3.2 percent with economic development in the OECD region rising solidly above 2016 levels. Secondly, road transportation is anticipated to continue to be the driving factor for oil demand growth in 2017, primarily as a result of anticipated high vehicle sales in the US, Europe, China and India.
"Thirdly, the expanding petrochemical sectors in US and China are projected to lend support to petrochemical feedstocks." Meanwhile, the report noted that the OPEC Reference Basket (ORB) averaged USD 52.40/b in January, representing of 1.4 percent and its highest level in more than a year and a half.
"This compares with a monthly average of USD 25/b seen in the same month last year," the report indicated.
It also stated that world oil demand growth in 2016 was revised higher by around 70 tb/d to now stand at 1.32 mb/d.
"The upward revision was primarily a reflection of better-than-expected data from OECD Europe and Asia Pacific with support coming from the petrochemical sector and colder-than-anticipated weather. As such, total global consumption in 2016 now stands at 94.62 mb/d," reads the report.
The report also global economic growth expectations remain at 3.0 percent in 2016 and 3.2 percent in 2017.
OECD growth in 2017 was revised up to 1.9 percent, following upward adjustments in the Euro-zone and UK. US economic growth remains unchanged at 2.2 percent. Forecasts for China and India in 2017 also remain unchanged at 6.2 percent and 7.1 percent, respectively.
Russia's 2017 growth was revised up to one percent, while Brazil's growth forecast remains unchanged at 0.4 percent. (end) amg.ibi