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OPEC Maintains 2013 Global Oil Demand Forecast

The Organization of the Petroleum Exporting Countries maintained its 2013 world oil demand growth forecast at 0.80 million barrels per day (mbd) and that of its world economic growth projection at 3.2 percent for 2013.

In its monthly Oil Market Report released Friday, the OPEC held its 2013 world oil demand at 0.80 mbd and noted that the impact of Hurricane Sandy is expected to reduce US oil demand in late October and early November, while year-end cold weather might put pressure on heating oil in the US and Europe as well.

Meanwhile, the OPEC held its world economic growth forecast for the year 2012 to 3.1 percent and that of 2013 at 3.2 percent. The cartel warned that the US expansion remains below potential at 2.2 percent in 2012 and 2.0 percent in 2013, while it predicts the growth in Japan to decelerate from 2.2 percent this year to 1.1 percent in 2013; and the Euro-zone to return to growth in the coming year at the magnitude of 0.1 percent following a contraction of 0.5 percent in 2012.

The cartel expects non-OPEC oil supply to grow by 0.5 mbd in 2012, while forecasting 2013 non-OPEC supply to grow by 0.9 mbd. The US, Canada, South Sudan and Sudan, Brazil, Australia, Kazakhstan and Russia are expected to be the main contributors to next year's growth, while Mexico, Norway, and the UK are anticipated to see the largest declines.

Light Sweet Crude Oil (WTI) futures for December delivery, are shedding $0.37 to $84.72 a barrel.

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