Saturday 14 March 2009

Opec expects demand for its oil to shrink

Opec should err on the side of further reducing its output, the oil cartel’s monthly oil market report hinted on Friday ahead of a meeting to decide whether to make further production cuts.

The report, compiled by analysts of Opec’s secretariat, said the world economy was in a “dreadful situation” and that financial and macroeconomic indicators in the first quarter continued to paint “a very gloomy outlook across the globe.”

Opec’s pessimistic view of the world’s need for its oil was published as ministers began arriving in Vienna for a meeting on Sunday.

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