Opec maintains forecast for oil demand in 2014

Suzie Neuwirth
THE ORGANISATION of the Petroleum Exporting Countries (Opec) yesterday maintained its forecast for world oil demand growth in 2014 and predicted “a fairly balanced market this year”, ahead of a meeting in Vienna next month to consider adjusting its output target.

In its monthly report, Opec maintained its forecast that global oil demand will rise by 1.14m barrels per day to reach 91.15m barrels per day in 2014. The unchanged prediction suggests that the production target will not be revised at the 165th Opec meeting on 11 June.

Opec, which accounts for 40 per cent of the world’s oil supply and represents 12 countries, has not revised its production target for over two years.

The report also said that US gas prices had fallen in April, but warned that the ongoing crisis in Ukraine with respect to Russian gas supply “will need close monitoring”.

Opec maintains its prediction that oil demand will increase slightly in the UK this year.

But UK oil output will fall by 30,000 barrels per day to 840,000 barrels per day, it said.

The International Energy Agency is due to produce its own outlook on the oil market tomorrow.

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