OPEC trims oil demand forecasts

Paris: OPEC on Tuesday trimmed its global oil demand forecasts for this year and next, as kingpin Saudi Arabia tries to cut output to bolster prices in a weakening market.

In its latest monthly report covering October, OPEC said demand is expected to increase 1.5 million barrels per day (mbd) this year, down 40,000 mbd from its previous estimate, to give a daily total of 98.79 mbd.

The cartel said this reflected lower-than-expected demand in the Middle East and to a lesser degree in China.

For 2019, demand will likely grow by 1.29 mbd to 100.08 mbd -- some 70,000 mbd less than in the September report.

On the supply side, it said non-OPEC states are likely to increase output, led by the United States.

"Although the oil market has reached a balance now, the forecasts for 2019 for non-OPEC supply growth indicate higher volumes outpacing the expansion in world oil demand, leading to widening excess supply in the market," OPEC said.