VIENNA, Dec 16: The Opec on Friday raised its forecast for growth in oil demand next year based on predictions of stronger-than-expected expansion of the world economy.

The world demand for oil will increase by 1.9 per cent in 2006 to 84.9 million bpd, Opec said in a report released in Vienna, updating a previous forecast of 84.8 million bpd.

The forecast is a “slight increase” over its outlook issued in November with demand set to increase in all major regions, Opec said. China is to account for more than one fifth of the increase of 1.6 million bpd.

During the current year, the oil cartel lowered its estimate for demand by 40,000 bpd to 83.3 million bpd. This figure represents an increase of 1.5 per cent against demand in 2004.

The latest Opec report said that production in countries outside the group would be 51.6 million bpd in 2006, an increase of 1.4 million bpd against 2005.

Opec, which supplies about 40 per cent of world demand, confirmed that its members had produced 30 million bpd during November.

The average price of oil, calculated by using a basket of 11 types of crude oil around the world, fell by $3.34 in November to $51.29 on average, Opec said.

However, expectations of a cold winter in the northern hemisphere had led to a rise in prices to $54.44 on Dec 15, Opec said.— AFP