Worldwide demand for oil will grow by more than previously expected, according to the latest estimates from the Organization of the Petroleum Exporting Countries.
In a monthly report released Tuesday, OPEC raised its 2015 global demand growth forecast to 1.18 million barrels per day compared to last month’s estimate of 1.17 million. All told, worldwide daily demand will touch 92.50 million barrels this year, the cartel’s analysts said.
OPEC has predicted accelerated demand growth in 2015 for several months now, compared to the 960,000 barrels per day rise in 2014. The group has said that about half of this year’s expected increase will come from China and the Middle East.
Still, the report said that oil demand expectations for OECD Americas skewed to the upside compared to previous assessments in part because of the dominance of SUVs and pickups in the region. OECD Europe also saw demand increasing during the first part of the year, OPEC said, citing economic improvements on the Continent.
Non-OPEC oil supply, meanwhile, is projected to grow by 680,000 barrels per day in 2015—a slight decline from previously released expectations. The report said this year’s non-OPEC supply is now likely to average 57.16 million barrels per day.
Citing secondary sources, the report said OPEC crude production increased a slight 18,000 barrels per day in April—to about 30.84 million daily barrels. (Despite this figure, Tuesday’s report indicated this year’s global demand for OPEC crude is expected average only 29.3 million barrels per day.)
While OPEC slightly increased production, the report cited preliminary data indicating April’s total worldwide supply decreased by 390,000 barrels per day to average 94.1 million.
As a result of these supply shifts, OPEC said its share of global crude oil production increased to 32.8 percent in April from 32.6 percent the prior month.
Earlier Tuesday OPEC publicly denied a claim that it had drafted a plan containing a pessimistic price scenario and recommending production quotas.
West Texas Intermediate traded higher Tuesday morning at more than $60, while Brent crude rose about 2 percent to above $66.
Goldman Sachs predicted in a Tuesday note that oil will see a decline as “the recent price rally is premature.”