Opec sees increase in oil demand

VIENNA: The Organisation of Petroleum Exporting Countries (Opec) has predicted that the increase in the world oil demand in 2008 will be 1.6%, with an average daily volume of 86.9 million barrels.

According to a report on hydrocarbon markets, the group of oil producers based its analysis on an average economic growth of 4.9% in the world in 2008. The Opec on Monday said according to that prediction, the oil consumption in 2008 will increase in 1.3 million barrels a day, although that figure could vary, depending on climate factors.

The group's study contrasts with recent predictions by the International Energy Agency, which said the oil demand expansion will be around 2.5%.

The organisation of oil producers said the increase in energy prices, the use of alternative fuels, and greater efficiency are among the elements that could stop the immeasurable increase of oil demand. The situation has become critical, with oil prices shooting up on Monday, reaching the highest levels of 2007, due to production problems that are affecting operations in several oilfields in the North Sea.