Dec 03 2010
OPEC Demand forecast
Don\’t Count On OPEC\’s Surplus For 2010
As industrial consumption recovers in developed countries such as U.S. and Germany, the Organization of Petroleum Exporting Countries (OPEC) raised its 2011 forecast for global oil demand. OPEC expects oil demand to grow by 1.2 million barrels a day to 86.95 million barrels next year. Oil in New York rose to the highest level in two years today after crude inventories declined in the U.S., the world’s biggest oil user, according to a government report yesterday. Recent strength in U.S. automobile and truck sales will bolster gasoline consumption in the fourth quarter, OPEC said. Global oil demand has been rising since the third quarter of 2009 led by developing economies outside the Organization for Economic Cooperation and Development including Brazil and China, according to the Paris-based International Energy Agency. Growth in oil demand next year is still strongest in China, Latin America and the Middle East, according to today’s report. China accounts for over a third of next year’s growth in demand in volume terms, OPEC said.
Similarly, to avoid stock-outs and maintain adequate inventory levels, it is vital to manufacturers and distributors to understand and predict customer demand. Forecasts are necessary to prepare for actual demand, even though they’re not always accurate or correct. Furthermore, accurate demand forecasts are crucial in order to maintain an optimized inventory and effective supply chain.
http://www.bloomberg.com/news/2010-11-11/opec-raises-2011-demand-forecast-on-signs-of-strong-u-s-german-growth.html