Tuesday 12 July 2011

Crude output growing, demand outlook unclear: OPEC - MarketWatch

OPEC's oil production increased by 0.5 million barrels a day in June as Saudi Arabia and other Arab members in the Gulf region raised output, but it remains short of expected demand later this summer, the group said in its monthly report Tuesday.

The Organization of Petroleum Exporting Countries also said medium-term oil demand looks more fragile and its growth rate will probably slow slightly next year. However, widespread economic uncertainty, particularly the 'wild card' of U.S. oil demand, makes the market difficult to predict, it warned.

The report, prepared in the month following a deep rupture within OPEC at its Vienna meeting over whether to increase production quotas, will give ammunition to both sides of the split.

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