OPEC raises projected demand for its oil

London, Jun 19: OPEC has raised projected demand for its oil in the second half of this year despite near record prices, saying the impact of higher interest rates may not be felt until 2007.

The producer group said on Monday oil production by Saudi Arabia, the world's biggest crude exporter, had fallen close to 250,000 barrels per day since March and stood at just over 9.1 million bpd in April and May.

OPEC said it saw total world oil demand growing by about 1.4 million barrels per day, or 1.6 percent, to 84.6 million bpd, broadly unchanged on last month's OPEC Oil Market Report.

''Even though the largest share of the increase in world oil demand growth is mainly in the developing countries, signs indicate an easing in oil demand, partly due to the high oil prices,'' OPEC said.

OPEC saw demand for its oil at 28.3 million bpd in the third quarter and 28.6 million bpd in the fourth.

REUTERS