Opec Chief Sees ‘Possible’ Drop In Global Oil Demand
From Times of Oman
Muscat: The Organisation of Petroleum Exporting Countries (Opec), which supplies about 40 per cent of crude across the world, sees a possible drop in demand for crude oil in the coming months, caused by a slowdown in economic growth in several regions.
“As we approach the end of 2013 and head into the next year, we need to remain vigilant.
There remain many concerns for the market to digest, and act upon,” said Abdullah Salem El Badri, Secretary General of Opec.
“The economy remains a major worry, particularly in the short- and medium-term,” he added, while delivering the keynote address at the Gulf Intelligence Oman Energy Forum here yesterday.
While the Opec expects global economic growth to accelerate to 3.5 per cent in 2014 from 2.9 per cent this year, Europe faces a ‘major challenge’ in its labour market, and growth in China and India has slowed, he noted.
The Opec chief said the oil producers continue to see a number of uncertainties and challenges facing them this year. “These include the future of the global economy as it continues its recovery, geopolitical events and their potential and actual implications for the oil market, as well as some supply issues, particularly in North Africa and the Middle East.” Despite these issues, however, there has been no shortage of oil in the market.
According to El Badri, Opec should be able to produce an additional six million barrels per day (bpd) of crude by 2018. The increase will make up for declining output elsewhere, in particular in the US where tight oil output is expected to start declining that year. Opec output will be around 30.7 million bpd in the fourth quarter of this year, he added.
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