OPEC Cuts Demand, Pumps Above 2014 Requirement

The Organisation of the Petroleum Exporting Countries (OPEC), has revealed that its production remained higher than next year’s global requirement despite a plunge in Iraqi and Libyan output.

OPEC lowered the forecast demand for its crude in the fourth quarter and 2014.

The outlook could point to a challenging 2014 for OPEC, as rising rival output will make it harder for it to keep its own production at high rates without risking a drop in prices below its preferred level of $100 a barrel.

In a monthly report issued on yesterday, OPEC forecast demand for its oil in 2014 will average 29.56 million barrels per day (bpd), down 50,000 bpd from its previous estimate.

OPEC also sees lower demand for its crude in the fourth quarter – when demand usually reaches an annual peak due to the Northern Hemisphere winter – and painted a bearish picture on the prospects for refined fuels.


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