OPEC sees higher demand for its crude in 2007

LONDON, Feb 15 (Reuters) OPEC, source of more than a third of the world's oil, on Thursday raised an estimate of demand for its crude in 2007, reflecting a lower supply forecast from countries outside the group.

OPEC expects demand for its crude in 2007 to average 30.25 million barrels per day, up from the 30.09 million bpd previously expected, the exporter group said in its Monthly Oil Market Report for February.

The Organization of the Petroleum Exporting Countries also said global oil demand would grow by 1.2 million bpd, or 1.5 percent, this year, little changed from last month's estimate.

Milder-than-usual temperatures earlier this year in top oil consumer the United States trimmed demand for heating fuel and OPEC said a return of warmer weather could prompt a cut in expected oil demand.

''If warmer temperatures return for the remainder of the first quarter and the fourth quarter sees a repeat of the current season's mild winter, oil demand growth in 2007 could see a further downward revision,'' OPEC's report said.

''However, the weaker-than-expected performance in non-OPEC supply, due to project delays and unexpected output declines, may be sufficient to offset the decline in the forecast demand.'' OPEC's view on oil demand this year is more pessimistic than that of the Paris-based International Energy Agency, an adviser to 26 industrialised countries.

The IEA this week raised its forecast for 2007 world oil demand growth after revisions to its outlook for China, and told OPEC any further supply cuts could markedly tighten the market.

REUTERS PKS KP1819