OPEC sees modest 2008 demand, lower need for its oil

LONDON (Reuters) – OPEC said on Monday that world oil demand in 2008 will grow moderately while supply from rival producers will expand, reducing the need for crude from the exporter group.

The assessment, in OPEC’s July Monthly Oil Market Report, underscores OPEC’s view that crude supply is enough and oil prices near a record high reflect a strain on refineries and other factors beyond its control.

“The outlook for the oil market in 2008 is shaping up to be quite similar to the current year, with continued tightness in the downstream supporting high product prices and frequent refinery outages exerting further upward pressure, despite the healthy crude oil market,” OPEC’s report said.

The Organization of the Petroleum Exporting Countries said oil demand in 2008 would rise by 1.34 million barrels per day, or 1.6 percent, to 86.94 million bpd, slowed in part by conservation and use of other fuels.

Reuters