OPEC sees 2013 demand downside risk

  • Share via facebook
  • Tweet this
  • Bookmark and Share

OPEC said on Tuesday its production declined in November closer to its oil output target, led by a cut in Saudi Arabian output, and warned world oil demand growth could underperform in the first half of 2013 due to economic weakness.

The Organization of the Petroleum Exporting Countries, in a monthly report, said its production in November fell 210,000 barrels per day (bpd) to 30.78 million bpd, according to secondary sources. Top exporter Saudi Arabia told OPEC it cut output by 230,000 bpd to 9.49 million bpd.

OPEC's report comes a day before the group meets in Vienna and contained no major adjustments in the outlook. The group is widely expected to retain its output target of 30 million bpd when it meets on Wednesday.

The report left its forecast for growth in world demand in 2013 unchanged at 770,000 bpd and forecast demand for OPEC crude next year would average 29.7 million bpd - unchanged from last month and down 400,000 bpd from 2012.

However, OPEC expects the first half of 2013 to see softer demand for its crude, an average of 29.25 million bpd, implying inventories could build up by about 1.5 million bpd should OPEC maintain November's output rate.

"Weakness in the global economy is causing a great deal of uncertainty for the forecast for world oil demand, which has a downward risk, especially in the first half of the year," said the report.

OPEC, source of more than a third of the world's oil, added that a pick-up in world economic growth to 3.2 percent from 3.0 percent in 2012 would prop up the market overall.

"Despite the considerable uncertainties affecting supply and demand in the market, and without underestimating the potential impact of non-fundamental factors, the improving economic outlook for the coming year should help support oil market stability," the report said.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Petroleum producers shift attention from Middle East: Kemp

Petroleum producers shift attention from Middle East: Kemp

Following four decades of war, sanctions, nationalisation and...

Back in business

Back in business

Iran’s tankers are back on the oceans as sanctions on the Islamic...

A new future for Saudi Arabia?

A new future for Saudi Arabia?

The vast Wadd Al Shimal phosphate mine in the north of Saudi...

Most Discussed
  • 24
    World's most pierced man refused entry to the UAE

    Tolerance has its limits everywhere including Dubai and those who considered Dubai a lawless circus were held accountable...so thank you Dubai authorities... more

    Thursday, 21 August 2014 10:51 PM - Khalil
  • 23
    Baby NOT on board?

    Some of you cry babies need to get your own personal apartments on the plane ! You cry more then the babies I have seen in my travels. LOL more

    Thursday, 28 August 2014 9:10 AM - Jim
  • 21
    Israel “must be punished” over Gaza, says Dubai police chief

    This high moral ground that Mick is talking abt sound very familiar. May I remind Mick that the US & its British ally alone killed over 1 million innocent... more

    Thursday, 7 August 2014 4:12 PM - Mathew