January 21, 2006	Saturday	Zilhaj 20, 1426

VIENNA, Jan 20: Worldwide demand for crude oil is expected to rise 1.9 per cent in 2006 to 84.8 million barrels per day (bpd), Opec said Friday in a report that modestly revised down a previous estimate.

The Organization of Petroleum Exporting Countries had forecast in December that global demand this year would rise to 84.9 million bpd.

Friday’s report, published shortly before a January 31 meeting of the 11-member cartel, came as Iran asked for a reduction in oil production this year.

Opec’s estimate for world oil demand in 2005 has been revised to 83.2 million bpd, with growth down from December 2005 estimates but up 1.1 million bpd or 1.4 per cent compared to 2004.

Opec said growth in oil demand would still be strong in 2006, with oil use increasing in all major regions except for the part of Europe west of Russia.

Demand in industrialized countries is expected to increase by 700,000 bpd, or 3.2 per cent, while demand in China is to jump six per cent, making China a consumer of about a fourth of the world’s crude oil, the report said.

It remains unclear whether this solid start to the year will be maintained throughout 2006, the report said, however, predicting global economic growth of 4.3 per cent.

Opec said the US economy was “a particular cause for concern” as any retrenchment by the American consumer could have a significant impact on Asian growth.

Opec said it had produced an average 29.82 million bpd in December compared to 29.99 million bpd the previous month.

Platts, an energy information service, recently estimated Opec production for December at 29.8 million bpd and said demand for Opec crude in 2006 would remain unchanged at 28.7 million bpd.

Platts said production in non-Opec countries was foreseen at 51.5 million bpd, down from a previous estimate of 51.6 million bpd but up 1.4 million bpd compared to 2005.

Opec supplies about 35 per cent of the world’s oil consumption.

Iran asked Opec Friday to reduce the cartel’s oil production quota by one million bpd from April, according to Tehran’s Opec representative.—AFP