Source: Tehran Times
Iranian governor to the Organization of the Petroleum Exporting Countries has said that there is no rise in crude oil demand is expected as U.S. and Europe are grappling with economic downturn.
"The rise in demand is estimated to be 700,000-800,000 barrels per day," he said, adding that OPEC members collectively are producing about 1 million barrels a day of crude more than needed.
The 12-member group is expected to stick with its target of 30 million barrels per day (bpd) when it meets in Vienna today, as Middle East instability keeps oil prices well above $100 despite weak demand forecasts and a build in inventories, according to Reuters.
OPEC pumped more than 1 million bpd above its 30 million target in October and November, according to Reuters surveys. It's latest projection is that demand for its crude will average 29.7 million bpd in 2013. "Western countries are entering economic recession, the United States has not finalized its budget and there are contending views on handling tax issue in the country," Khatibi was quoted by the Shana news agency as saying.
OPEC experts were meeting on Monday to assess demand for the cartel's oil and prepare a report to Wednesday's ministerial meeting. OPEC said last month that economic weakness in some major consuming countries could shave 20 percent from its global demand growth outlook for 2013.
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