TEHRAN — Accredited international institutions have estimated a 500,000-1.2m bpd rise in global demand for oil in the year 2010, said Iran’s representative to Organization of Petroleum Exporting Countries (OPEC), Mohammad-Ali Khatibi.

 

In an interview with ISNA, Khatibi noted that this development has been reported to take place in the future while there was a 1.5m-2.5m bpd fall in demand for crude in 2009. He added that meanwhile some believe that rising demands for crude may be met by oil exporting countries that are not OPEC member states.

 

He underscored that the oil market moves in line with hopes and threats, such that whenever there are promising reports oil prices surge and whenever reports are worrisome, oil prices drop. In fact, he added, the current state of oil market reacts to economic news. Meanwhile, he heralded, it seems the global economy benefits from positive developments and parameters that usher in an end to global economic meltdown and recession.

 

Khatibi emphasized: “Currently, the negative global economic growth has improved from -0.6% to -0.2%. Meanwhile, the current global economic growth is not appropriate but this is a beginning, which is considered as a positive development.”

 

He reiterated that with the improvement of global economic conditions, the demand for oil, and, in turn, the crude prices will rise.

 

 

Source: IRAN NEWS ECONOMIC DESK

August 26, 2009