The OPEC News Agency released its Monthly Oil Market Report (MOMR) Monday where OPEC has increased it projection for the call on OPEC crude and inventories in 2001 by 200,000 barrels per day (bpd) to 27.6 million bpd.
OPEC has revised its estimate for the call on OPEC crude and stocks upwards for the first quarter of 2001 by 300,000 bpd to 27.3 million bpd, and the second quarter was also revised up by 300,000 bpd to 25.9 million bpd, the Q3 call also up 300,000 bpd to 27.8 million bpd, but the Q4 call was left unchanged at 29.2 million bpd, MOMR said.
OPEC said the further reduction of the world oil demand in 2001 forecast to 77.01 million bpd reflects evident signs of a slowing global economy but the cartel warned that there is a possibility that demand growth this year will be lower than expected, MOMR said.
The largest oil consumer, the United States, showed no growth in demand in the last quarter of 2000, MOMR said, pointing out that the possible strengthening in petroleum product prices in the U.S this year will dampen demand.
In January, OPEC slashed output by 1.5 million bpd in response to signs of slower oil demand, but OPEC 10 were still overproducing by 270,000 bpd at 25.47 bpd in February, MOMR said.
The cartel announced an additional cut of 1 million bpd at its March meeting pressured by the threat of weaker oil prices and
© 2001 Mena Report (www.menareport.com)