Canada will ramp up oil sands production in 2010, putting a dent in oil demand from the Organization of the Petroleum Exporting Countries, according to a report released Tuesday.
In its monthly report, OPEC trimmed its crude oil demand forecast for 2010 by about 20,000 barrels per day to 28.59 million bpd.
OPEC’s 12 member countries produce more than one-third of the world’s oil. The group said demand for its crude will be slightly lower than expected in 2010 because of how much oil non-member countries will pump out this year.
OPEC now expects supply from outside the group to average 51.31 million bpd, up about 40,000 bpd.
Increasing Canadian oil sands production will play major part in rising global inventories this year, OPEC said.
Canada is expected to average 3.26 million bpd in 2010, an increase of 90,000 bpd over last year.
Normal operations at Suncor’s Fort McMurray production facility in Alberta as well as projects in Foster Creek and Muskeg will contribute to the upswing, the report said.
Conventional oil production on the other hand, is on the decline in Canada, OPEC said.
Overall, January’s cold snap felt by much of the northern hemisphere has done little to increase oil demand, OPEC said.
“Inventories remain high enough to cope with any sudden jump in winter demand.”
Oil prices gained $1.02 Tuesday to $79.02 US a barrel.
