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 today, the OPEC held its 2013 world oil demand at 0.80 mbd, while noting that slower industrial production has sharply reduced global oil demand in both the US and China. The winter outlook represents further uncertainties in the coming months the economic slowdown in the developed countries could increasingly spill over into the non-OECD, the cartel added.
Meanwhile, the OPEC trimmed its world economic growth forecast for the year 2012 to 3.1 percent from 3.3 percent previously, reflecting slowing growth since the start of this year. However, under assumptions that the deceleration will bottom out in the current quarter, the forecast for 2013 has been left unchanged 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 euro zone to grow at 0.1 percent in 2013, following a contraction of 0.5 percent this year.
The cartel expects non-OPEC oil supply to grow by 0.6 mbd in 2012, following a downward revision of 0.1 mbd from the previous month, due mainly to lower-than-expected supply from Brazil, Kazakhstan, China, Azerbaijan, and the UK.
Light Sweet Crude Oil (WTI) futures for November delivery, are shedding $0.43 to $91.96 a barrel.
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