World Oil Outlook: Markets Tighten, Continued Growth In Demand

World oil markets are projected to tighten this summer due to continued growth in oil demand and production restraint by members of the Organization of Petroleum Exporting Countries (OPEC). Despite the recent increases in world oil prices, global oil consumption is projected to grow by 1.4 million barrels per day (bbl/d) in 2007 and by 1.6 million bbl/d in 2008. About one-half of the projected growth will come from China and the United States (World Oil Consumption Growth). Preliminary first-quarter 2007 data indicate that U.S. consumption rose by over 500,000 bbl/d and Chinese consumption rose by about 400,000 bbl/d relative to first-quarter 2006 levels. Colder weather relative to last year was a major contributor to higher U.S. demand.

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