The Organization of Petroleum Exporting Countries (Opec) raised estimates for the amount of crude it will need to produce this year because of surging Asian demand.
Opec will have to increase supplies by 400,000 barrels a day to 29.4 million a day in 2011 to meet rising demand from emerging economies, the group’s Vienna-based secretariat said in a monthly report today. That’s 200,000 barrels a day more than it forecast last month. Still, inventories remain “adequate” to meet current demand, it said.
“The magnitude and speed of the world economic recovery will have a remarkable impact on world oil demand this year,” the organization said. “Expectations for a sustained improvement, particularly in key emerging economies such as China and India, will continue to influence oil market direction.” Opec officials, including Saudi Arabian Oil Minister Ali al Naimi, have signaled content with oil prices at $70 to $90 a barrel.
Crude futures traded at about $91 a barrel in New York today. Opec, responsible for 40 per cent of global production, will next meet to review its quota in June.
