VIENNA, Feb 13: Opec trimmed its forecasts for global oil demand on Friday, forecasting that demand would shrink by 0.67 per cent in 2009 because of “economic depression” in industrialised countries.

“World oil demand continues its steep decline from last year and is expected to follow this strong negative pattern at least for the first three quarters of the year,” the Organisation of Petroleum Exporting Countries wrote in its February report.Oil demand in industrialised or so-called OECD (Organisation for Economic Co-operation and Development) countries “is experiencing a steep decline resulting from the region’s economic depression,” the cartel said.

As a result, Opec adjusted its forecast for world demand growth, predicting that demand would contract by 0.58 million barrels per day (bpd) or 0.67 per cent in 2009.

In its previous monthly bulletin released in January, Opec had signalled a contraction of 0.18 million bpd for 2009.

Opec also revised its estimate for world oil demand last year, calculating that demand shrank by 0.22 per cent or 0.19 million bpd to an average 85.7 million bpd in 2008.

Previously, the estimate had been for a contraction of 0.06 per cent or 0.05 million bpd.

“US oil demand is considered the major factor behind the vanishing growth in oil demand in 2008,” the report said.

“North America alone shaved 1.2 million bpd from world oil demand last year. For the whole OECD region, the decline reached 1.6 million bpd. This was more than enough to offset all the oil demand growth from other regions in the world.”

The current persistent overhang in inventories posed a major challenge for the markets, Opec continued.

“The high and growing stock levels -- particularly for crude oil -- are likely to continue to disrupt the overall stability of the market. Their impact will become even more pronounced with the onset of low seasonal demand as well as the upcoming refinery maintenance period,” it said.

The current state of the market under prevailing supply and demand uncertainties, combined with the deepening economic crisis worldwide, highlights the necessity and importance of Opec’s actions to stabilise the market, including most recently the decision taken at Oran.” At a meeting in Oran, Algeria on December 17, Opec agreed to cut output by 2.2 million barrels per day.—AFP