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OPEC: Oil Demand to Exceed 10-Year Average in 2017

OPEC: Oil Demand  to Exceed 10-Year Average in 2017OPEC: Oil Demand  to Exceed 10-Year Average in 2017

Global demand for oil could outdo the ten-year average in 2017 as the health of the world economy improves and demand for road transport continues to grow, OPEC's latest monthly report has forecast.

The new data from the 13-nation organization on Monday expects demand to grow at 1.2 million barrels per day, "well above" the 1.0 million bpd averages seen in the past decade, CNBC reported.

The new forecast comes after a recent commitment by OPEC countries and 11 non-OPEC countries to reduce production in a bid to manage supply and demand levels better. In January, OPEC production decreased by 890,000 barrels per day, according to secondary sources noted in the report. OPEC's forecast for 2017 is down slightly from the 1.3 million bpd estimated for 2016, during which oil demand in OECD Europe, OECD Asia Pacific and other Asia was "better-than-expected" due to increased demand in the petrochemical and transportation sectors.

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