Global oil demand will rise more quickly than expected in 2010 but the slow pace of economic recovery could continue to cloud the outlook, the Organization of the Petroleum Exporting Countries (OPEC) said on Wednesday.
In its monthly oil report, OPEC said that world demand will rise by 900,000 barrels per day (bpd) in 2010 or 1.1% to average 85.2 million bpd, up 100,000 bpd from its February projection.
OPEC also pointed to a further rise in production from its members in defiance of agreed output limits.
Oil demand has been highly dependent on the world economy, supported by government-led stimulus plans, OPEC said. "These stimulus plans have already done a great job of jump-starting many sectors of the economy, including energy," the cartel said.
However, questions remain as to how long governments will be able to afford supporting their economies, it added. "Should this support diminish, then world oil demand would of course be impacted," OPEC said.