(MENAFN- Arab Times) VIENNA Oct 10 (Agencies): Oil cartel OPEC kept its world oil demand growth projections unchanged for 2014 and 2015 on Friday as global economy forecasts remained stable going into next year. The estimates were issued as the price of oil continues to fall because of gloomy sentiment on the market about prospects for economic growth notably in the eurozone.
World demand will grow by 1.05 million barrels per day (mbpd) to 91.19 mbpd this year the Organization of Petroleum Exporting Countries said in its latest monthly report. For 2015 the cartel predicted demand to reach 92.38 mbpd again unchanged from its previous forecast. Growth was mainly supported by China Brazil and Saudi Arabia where consumption was on the up despite dips in Europe and other countries of the OECD region OPEC said in its report. It also cited unchanged OECD forecasts on the world economy to explain its stable oil demand predictions. Meanwhile top oil exporter Saudi Arabia told OPEC it raised its oil production in September by 100000 barrels per day adding to signs it has yet to respond to a drop in prices well below $100 a barrel by trimming output. In a monthly report issued on Friday the Organization of the Petroleum Exporting Countries (OPEC) said Saudi Arabia reported September production of 9.704 million barrels per day (bpd) up from 9.597 million in August. The lack of a Saudi output cut could add to perceptions that the kingdom is looking to defend market share rather than prices. Oil in September fell below $100 a barrel a level endorsed by Saudi Arabia for the first time in 14 months. OPEC's report said the more than $20-a-barrel price fall since the end of June reflected weak demand and ample supply but it echoed the view of core Gulf OPEC members in saying winter demand would revive the market. 'This increased demand would lead to a higher crude intake by refineries thus also supporting the crude oil market in the coming months' the report from OPEC's Vienna headquarters said. OPEC meets to set output policy for the early months of 2015 on Nov 27 in Vienna and so far comments from officials suggest it is no closer to any collective steps to support the market. Iran's oil minister this week in a comment that appeared to be a reference to Saudi Arabia said OPEC would tolerate the price fall until 'OPEC majors' cut their output. Following those remarks an OPEC delegate said it looked unlikely OPEC would agree to reduce supply in November and that it was up to the Saudis to cut. 'The question should be posed to Saudi Arabia' the delegate said. Saudi officials could not be reached this week for comment due to the Eid holiday. In the report OPEC left its forecasts for global oil demand growth unchanged. It still expects an acceleration of demand growth in 2015.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.