The oil cartel Opec has upgraded its forecast for world oil demand raising concerns that motorists could soon be paying more at the pumps.
The cartel which represents 12 of the world’s leading oil producing nations has expects oil consumption to increase by 1.14m barrels per day (bpd) in 2014. This revised figure represents a rise of 50,000 barrels on its previous estimate.
The increased demand is likely to raise prices at the pumps and also put pressure on the UK Chancellor not to increase fuel duty in the wake of this rather depressing news. The last time fuel duty was increased was in January 2011, however this unpopular move was later reversed by 1p / litre in March of the same year.
Opec’s latest monthly report stated that, “The assumption that the global economy will see a gradual recovery in 2014, led by growth acceleration in the major OECD economies, remains valid, that recent developments in Ukraine have added to this year’s growth risk”.
Adding to the upward pressure on fuel prices is the stand off between Russia and the Ukraine over Crimea and the turmoil in Libya.