Opec cuts oil demand growth forecast on economy

LONDON – Opec cut its forecast for global oil demand growth this year as a worsening economic outlook curbs consumption in developed economies.

The Organisation of the Petroleum Exporting Countries (Opec), in a monthly report yesterday, also said the group’s own production has surged to more than 30 million barrels per day, an increase that comes just as the economic outlook is weakening.’Dark clouds over the economy are already impacting the market’s direction,’ Opec said in the report. ‘The potential for a consequent deterioration in market stability requires higher vigilance and close monitoring of developments over the coming months.’World oil demand will increase by 1,21 million barrels per day (bpd) in 2011, Opec said in the report, 150 000 bpd less than expected last month. Growth next year was lowered only marginally, by 20 000 bpd to 1,3 million bpd.Brent crude slumped to the lowest in six months yesterday, dipping below the US$100-mark briefly after a US credit downgrade intensified concern about a global slowdown in demand for energy. – Nampa-Reuters