2005 - OPEC

OECD
OECD countries, which account for approximately three-fifths of total world oil demand, saw
demand growth of 170,000 b/d, or 0.35 per cent, to average 49.66 mb/d. On a quarterly
basis, OECD countries grew by similar amounts, 500,000 b/d, in both the first and second
quarter, while in the third quarter growth slowed to a meagre 100,000 b/d and, surprisingly,
growth dived into negative figures, –450,000 b/d, in the fourth quarter. The hurricane season,
the overall warm weather conditions, as well as high oil prices, were the chief contributors to
the slowdown in oil demand growth in OECD countries.
Developing countries
Developing countries contributed the lion’s share, approximately 75 per cent, of oil demand
growth in 2005. However, oil demand growth was not as strong as last year. Oil demand in
developing countries grew consistently throughout the year, with first quarter demand rising
by 900,000 b/d, followed by 800,000 b/d and 700,000 b/d in the second and third quarters,
respectively. The lower growth trend continued in the fourth quarter with demand only rising
by 500,000 b/d. Oil demand consumption was largely affected by the removal of subsidies
resulting in the almost doubling of domestic petroleum prices in several major non-OECD
Asia consuming countries.
Demand in India, the biggest consuming country within the non-OECD Asia group, account-
ing for 30 per cent of this group’s consumption, rose by 1.8 per cent in 2005. Nevertheless,
a comparison of production and trade statistics with figures for demand, points to a possible
build-up in India’s domestic oil inventories. As expected, high oil prices slightly affected oil
demand in Asia. In some countries, such as the Philippines, there are, in fact, indications of
a considerable drop in oil consumption due to high petroleum prices and lower economic
activity. It is also interesting to note that oil demand in Indonesia fell dramatically in October,
by approximately 40 per cent, due to the removal of subsidies, but by the end of the year
demand had recovered to previous levels.
In the Middle East, particularly because of strong and buoyant economies, oil demand growth was
extremely healthy, around 310,000 b/d for the year. As expected, strong demand in the summer
months saw this average figure increase to 350,000 b/d in the third quarter. The Middle East
experienced oil demand growth of 5.5 per cent in 2005, the largest increase worldwide. Percent-
age-wise this doubled the total oil demand growth witnessed in OECD countries in 2005.
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