The Organization of the Petroleum Exporting Countries has said that the world oil demand is expected to increase by 1.38 million barrels per day, some 90,000 more than announced in its July estimates.
In its latest report, OPEC noted that “Given the better-than-expected growth in global oil demand so far this year, together with some signs of a pickup in the economies of the major consuming countries, crude oil demand in the coming months should continue to improve and, thus, gradually reduce the imbalance in oil supply-demand fundamentals.”
OPEC stuck to last month’s forecast that demand growth in 2016 would reach 1.34 million barrels per day thanks to global GDP expansion set to reach 3.5 per cent, up from 3.2 per cent this year.
Oil prices collapsed 60 percent between last June and January due to a supply glut caused by the boom in US shale oil.
President Muhammadu Buhari has advocated diversion to Agriculture as a major revenue earner because of the dwindling Oil Prices globally.
