The world's top oil exporter, Saudi Arabia, has become the fastest growing oil consumer and is fuelling explosive demand for oil across the region, a prominent energy oil consultancy said yesterday. PFC Energy, based in Washington, increased its estimate for regional oil demand by almost 100,000 barrels per day at a time when slowing markets in the rest of the world are expected to lose their growing appetite for crude. PFC now estimates that total demand for oil products in Iran and the GCC will average 4.17 million barrels per day this year, a two per cent upwards revision from the firm's forecasts this spring of 4.086 million bpd. Altogether, demand for oil products increased 10.3 per cent in Iran and the GCC this year, PFC said. "These countries don't stop surprising," said Raja Kiwan, an author of the report. "Saudi Arabia is the world's fastest-growing oil demand centre right now." The rise in regional demand for energy reflects the needs of a booming economy, but also raises concerns in energy-importing nations because it determines how much crude is available for export from the Gulf. But Mr Kiwan said slowing demand for crude in industrialised nations and production capacity expansions in GCC countries meant that regional demand would not yet affect export volumes. With falling demand and capacity expansions, Mr Kiwan estimates Opec countries will have four million bpd of spare production capacity in the medium-term. Mr Kiwan said he did not foresee any big changes to the quantity of crude available for export until several large refinery projects were completed in the UAE, Saudi Arabia, Kuwait and Iran after 2012. Those projects will process large volumes of crude, but will also export a significant proportion of output. The increase in demand for oil in the region is being led by a need for diesel, which is used in transportation, construction and power generation. Much of the gain has been concentrated in Iran and Saudi Arabia, the region's biggest markets. In Saudi Arabia alone, diesel demand had increased 28 per cent between January and July, PFC said. But demand for petrol also continues to increase in Iran, despite the imposition of quotas on fuel purchases, and Saudi Arabia is requiring an increasing amount of heavier fuel oil to supply power stations. Demand for oil products in Iran now clocked 1.68 million bpd and has increased 9.9 per cent for the year, PFC said. In July, Iranian demand for petrol stood at its highest level ever, indicating monthly purchase quotas were no longer having their intended effect. Fuel oil use in Saudi Arabia has increased seven per cent this year, PFC estimates, and the country is expected to import an average of 30,000 barrels of fuel per day, as the country's energy needs outstrip refining capacity. Oil product consumption has increased 8.8 per cent in the country this year, PFC said. PFC's estimates are in line with those of the International Energy Agency, an organisation of energy-consuming nations that provides monthly estimates for oil demand. The IEA estimates oil demand across the entire Middle East, including North Africa, will average 6.9 million bpd. The region is the second-largest growth region for oil demand after China, the agency said in a report this summer. cstanton@thenational.ae