Growth in oil demand will slow says Opec

THE fragile global economic recovery will slow the growth in demand for oil next year, according to Opec.

But the oil-producing nations' organisation yesterday said demand was still likely to hit record levels of around 89.5 million barrels a day (bpd), and will continue to outstrip supply.

Opec was publishing its first predictions for next year, and estimated that world oil consumption would rise by 1.32 million bpd in 2012, slightly lower than the growth of 1.36 million bpd expected this year.

It said the demand outlook was subject to much uncertainty and could slow further depending on factors such as the speed of Japan's recovery from this year's nuclear disaster and tsunami, and the impact of high oil prices on developed economies.

These factors could cut a further 200,000 bpd off world demand, Opec added.

Oil prices remained stable following the report, with Brent crude around the $116 mark. Opec blamed market speculation for the high price.