Opec predicts increasing demand for oil

11 July 2008

Opec predicts increasing demand for oil

Oil producing cartel Opec has produced its annual report, predicting that demand will grow by 50 per cent by 2030.

The group has blamed recent high prices on market speculation and the weakness of the US dollar, rejecting suggestions its own refusal to increase output is to blame.

Despite a projected drop in demand to 31 million barrels per day in 2012, Opec believes the figure will increase to 113 million in 2030.

Fuel and home heating oil prices are set to soar as a result of rising costs, but the report claimed that low prices result in a lack of investment, leaving the industry unable to meet demand.

"Low prices were bad for the oil industry and in the longer term they were also bad for the consumer," the summary stated.

This week the UK's offshore industry called for government incentives to enable maximum output from North Sea oil reserves.

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