The United States Department of Energy increased its estimate of world oil demand in 2011 from 88.02 to 88.16 million barrels per day.
EIA expects the price of WTI crude oil to average about $93 per barrel in 2011, $14 higher than the average price last year. For 2012, EIA projects that WTI prices will continue to rise, averaging $98 per barrel.
EIA's forecast assumes U.S. real gross domestic product (GDP) grows 3.0 percent in 2011 and 2.8 percent in 2012, while world real GDP, weighted by oil consumption, grows by 3.9 percent and 4.0 percent, respectively, in 2011 and 2012.
The EIA said world crude oil and liquid fuels consumption grew by an estimated 2.4 million barrels per day in 2010, to 86.7 million barrels per day, the second largest annual increase in at least 30 years.
This growth more than offset the losses of the previous two years and surpassed the 2007 level of 86.3 million barrels per day reached prior to the economic downturn.
The EIA also raised forecast for OPEC crude oil production as it sees output to increase to 0.4 million bbl/d in 2011, followed by a further increase of 1.2 million bbl/d in 2012.
These production increases are in response to the increase in global demand for oil and limited growth in supplies originating in non-OPEC countries.
Non-crude liquids production is expected to increase by 0.7 and 0.4 million bbl/d in 2011 and 2012, respectively. EIA expects that OPEC surplus production capacity will remain above 4 million bbl/d during the next 2 years.
EIA expects that world liquid fuels consumption will grow by 1.5 million barrels per day in 2011 and by an additional 1.6 million barrels per day in 2012.
Non-OECD countries make up almost all of the growth in consumption over the next 2 years, with the largest contributions coming from China, Brazil, and the Middle East.
Among the OECD regions, EIA expects that only North America will show oil consumption growth over the next 2 years, which will be offset by continued declines in OECD Europe and Asia.
