Opec raised its estimate of global oil demand growth for 2011 by 120,000 barrels per day and now expects an increase of 1.17 million bpd in global consumption in 2011 over 2010.

It raised its forecast of world oil demand next year by about 310,000 bpd to 86.95 million bpd, and raised its estimate of consumption this year by around 190,000 bpd to 85.78 million bpd.

"Consumption in the OECD has outpaced expectations as a result of the stronger-than-expected economic activities, supported by various stimulus plans," Reuters quoted Opec as saying in its Monthly Oil Market Report, which is written by economists at the group’s Vienna headquarters.

But it said inventories of crude and oil products were ample both onshore and offshore and this situation was unlikely to change significantly.

"As a result, the market should be well prepared even if the winter demand turns out to be stronger than expected," the report said.

Opec raised its estimate of demand for its own crude oil in 2011 by around 400,000 bpd to 29.19 million bpd. At the same time, it cut its forecasts of supply of oil from producers outside Opec by around 70,000 bpd for both 2010 and 2011.

The 12 Opec members produce more than a third of the world’s oil supply.

OPEC has imposed limits on its members’ production for the last two years in an attempt to stabilise prices.

The group left its oil output target unchanged at a meeting on 14 October, as it has since making a record supply curb of 4.2 million bpd in December 2008.

However, many members have been informally boosting supply since 2009 as prices and demand recovered.

The Opec report said the 11 Opec members bound by oil production targets - all except Iraq - produced 26.89 million bpd of crude in October.

That means they met around 51% of promised supply cuts, down from around 55% in September, Reuters calculations showed.

Source: News Wires