OPEC Says U.S. Economic Uncertainty Creates Downside Risk For Oil Demand

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OPEC released its monthly oil report Wednesday, with organization saying that economic uncertainty in the U.S. creates downside risk for oil demand.

According to OPEC's report, "uncertainty about the pace of the U.S. economic recovery" has the potential to lower estimates for oil demand.

"U.S. demand is a key uncertainty for this year. Non-OECD regions will be the sole contributors to global demand growth in 2010," the organization said.

The report also said that the slow pace of the recovery for the world economy is "putting pressure on oil demand."

For 2010, the report forecasts that world oil demand will grow by 0.8 million barrels per day (bpd), bringing the average to 85.1 million bpd.

"Required demand for OPEC crude is forecast to remain almost at the same level as last year, following two consecutive annual declines," the report said. "World oil demand and non-OPEC supply remained almost unchanged."

Further, OPEC's report said that the expected 1% growth in U.S. oil demand this year "may not materialize." It argued that there are "several obstacles" hampering U.S. demand growth, with the economic recovery being the most prevalent.

OPEC released its monthly oil report Wednesday, with organization saying that economic uncertainty in the U.S. creates downside risk for oil demand. According to OPEC's report, "uncertainty about the pace of the U.S. economic recovery" has the potential to lower estimates for oil demand. (Market News Provided by RTTNews)