OPEC Estimates Ease Oil Price Pressures

OPEC estimates ease oil price pressures

VIENNA, Dec. 14 (Xinhua) — OPEC’s oil demand growth forecast for 2007 and 2008 remains unchanged with the cartel estimating that the improving geopolitical situation and slowing economic outlook should help ease oil price pressures.

In its latest monthly report, OPEC put world oil demand growth at 1.2 million bpd this year and 1.3 million bpd for 2008, unchanged from its previous estimate.

OPEC, which supplies nearly 40 percent of the world’s crude oil,said in its newly published report that some of the conditions that drove oil to record highs have recently eased.

The oil cartel holds a relatively downbeat outlook toward the global economy next year, viewing prospects for growth as increasingly clouded by an expected slowdown in the United States and other OECD (Organization for Economic Co-operation and Development) regions.

OPEC predicts demand for its crude oil will average at 31.4 mlnbpd next year, a decline of 0.3 mln bpd from this year’s demand level.

OPEC has agreed to hold an extra output meeting on Feb. 1, 2008,to reassess the market and take measures to keep supply and demandin balance.

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