ePaper

Sunday, June 24, 2018

OPEC sees 'uncertainty' in oil market

  • Print

After months of sharp oil price rises there is now considerable uncertainty as to the market's direction for the rest of the year, OPEC said on Tuesday as a key meeting of oil producers looms.

Question marks over global economic growth, and resulting oil demand, as well as over US producers' capacity to pump oil at an ever faster pace make forecasting difficult, the Organization of the Petroleum Exporting Countries said in its regular monthly oil market report.

Various sources show that "considerable uncertainty as to world oil demand and non-OPEC supply prevails", OPEC said, leading to a wide range of estimates for the remainder of 2018.

While economic growth is projected to be strong in the US, Europe and Japan, there is a chance of a slowdown in China and India, OPEC said. For now, global oil demand growth is expected at 1.61 millions of barrels per day (mb/d) in the second half of the year, with total oil demand projected to breach the 100 mb/d level.

But uncertainty "warrants close monitoring of the factors impacting both world oil demand and non-OPEC supply that will shape the outlook of the oil market going forward", the report said.

Non-OPEC suppliers include the United States where producers have returned to the business in droves, encouraged by rising prices. This will help push non-OPEC oil supply growth to 2 mb/d in the second half of the year, OPEC said.

The oil price has risen steadily over the past year, with Brent crude establishing itself above $70 for the first time in years last month - some 30 percent higher than at the same time in 2017.

---AFP, Paris

More News For this Category

Trump greets EU trade reprisals with threat of steep auto tariff

| By
President Donald Trump on Friday threatened to escalate a trade war with Europe by imposing a 20 percent tariff on all US imports of European Union-assembled cars.
Trump greets EU trade reprisals with threat of steep auto tariff

Harley says EU duties could prompt price hikes

| By
Harley-Davidson Inc could be forced to raise prices in Europe due to EU tariffs on US goods, hitting buyers of new motorcycle models when they are shipped to
Harley says EU duties could prompt price hikes

Opec agrees ouput rise of about one million barrels: KSA

| By
Opec members have agreed on a combined increase in crude oil output of one million barrels per day, the oil minister of the cartel's kingpin Saudi Arabia said
Opec agrees ouput rise of about  one million barrels: KSA

Xiaomi puts indefinite delay on CDRs

| By
Chinese smartphone maker Xiaomi Corp said on Saturday there is no time frame for a mainland share offering, casting doubt on Beijing's efforts to lure foreign-listed Chinese tech
Xiaomi puts indefinite delay on CDRs

Japan's inflation stays weak despite stimulus measures

| By Business Desk
Japan's core inflation remained subdued in May, yet again highlighting how far off the central bank is in hitting its 2 per cent price goal despite over five
Japan's inflation stays weak despite stimulus measures

German consumer prices 5% above EU average

| By Business Desk
The level of consumer prices in Germany is 5 percent above the European Union (EU) average, according to compiled figures published on Friday by the Federal Statistical Office.

SL's female labor force to boost economic growth: IMF

| By Business Desk
The International Monetary Fund (IMF) on Friday said raising Sri Lanka's female labor force participation can boost the island nation's economic growth in the long run.

China May gasoline exports up 134% at 1.47m tonnes

| By
China's gasoline exports in May surged from a year earlier, as state refiners sought to profit from good export margins and additional quota, customs data showed on Saturday.

Hong Kong has world's priciest office market: Survey

| By Business Desk
The rent is due, the rankings are out and it is another year at the top for Hong Kong, the most expensive office market in the world.

Trump threatens 20 percent tariff on all imported EU cars

| By Asian Age Online
US President Donald Trump threatened Friday to impose a 20 percent tariff on cars imported from the European Union, after the bloc's additional tariffs on
Trump threatens 20 percent tariff on all imported EU cars

© 2018 The Asian Age