Asia drives oil demand

Figures show that Asian countries other than China, the former Soviet Union, and the Middle East are the driving force in forecasts of growing demand for oil.

In Europe, on the other hand, actual demand fell by over 1 percent in the first quarter and demand growth are also falling lower in China and the United States. Further, global demand growth for oil in 2005 has been predicted by OPEC to likely amount to 1.78 million barrels per day, compared to a demand growth of 2.79 million barrels per day in 2004.

In China, demand grew by 19.3 percent in the first quarter of 2004. In contrast, 2005’s first-quarter growth there is estimated at only 4.5 percent. Reasons for this fall-off in demand are said to include a lower incentive to import oil because the government limits retail prices. In Europe, oil deliveries in the first quarter of the year were down 11.6 percent in Germany and by 6.4 percent in Italy.

Meanwhile, in the United States demand grew 1.2 percent in the first quarter. This was less than half the demand growth in the same quarter last year, and a bit below expectation. The slackening demand growth in the US has been blamed mostly on higher prices. In real numbers, US demand is expected to rise by 260,000 barrels per day in 2005, compared to a rise in demand of 490,000 barrels per day last year.