OPEC cuts estimated growth of oil demand in 2007 to 1.5 percent

VIENNA (AFP) – The Organization of Petroleum Exporting Countries has revised downwards its estimate for growth in world oil demand this year to 1.5 percent from 1.6 percent.

OPEC said in its monthly report that global demand for oil would grow by 1.5 percent, down from its previous estimate of 1.6 percent, owing to mild temperatures.

“The warm weather has… dampened oil demand in 2007 with lower consumption expected for heating oil and fuel oil,” it said. The cartel lowered its growth estimate for 2007 by 70,000 barrels per day (bpd) to 1.25 million bpd.

“Although transport fuel consumption is picking up, it will not be enough to offset the decline in heating oil and fuel oil demand” during its “peak cycle,” OPEC said in its January report.

AFP