“OPEC” cut its forecast for growth in demand for oil production and expectations of access prices to $ 25
“OPEC” cut its forecast for growth in demand for oil production and expectations of access prices to $ 25
Saturday, January 17, 2015 10:32
BAGHDAD / follow Baghdadi News / … reduced Organization of Petroleum Exporting Countries (OPEC) forecast for oil demand growth issued by Member States during 2015 to 28.8 million barrels per day, a decline of 100 thousand barrels per day from the previous forecast issued in December last, and compared the rate of exports last month of 30.2 million barrels per day.
Predicted OPEC in its monthly report issued, yesterday, that the demand for oil is growing globally by 1.15 million barrels per day in 2015, an increase of 30 thousand barrels per day from its previous forecast also due to expectations of higher demand in the Organisation for Economic Co-operation and Development countries and a number of Asian countries.
The Member States decided in OPEC at its meeting at the end of November last install production ceiling at 30 million barrels per day.
Oil prices have lost about 60% of its value since the middle of last year, after prices approached this week from the lowest level in 6 years.
OPEC said in its report that the production of non-Member States of the global oil will rise by about 1.28 million barrels per day in 2015 compared to last year, but he is retarded by about 80 thousand barrels per day from the previous forecast.
The report also showed a rise in OPEC production of crude in December last, by 140 thousand barrels per day compared to the previous month, bringing the total production to 30.2 million barrels a day, according to secondary sources.
The report said that the expectations of growth of the world economy, for the years 2014 and 2015 remain unchanged from last month at 3.2 and 3.6% respectively, but the growth forecast for the Member States of the Organisation for Economic Co-operation and Development rose to 2.2% in 2015, from a previous forecast growth 2.1%. The report indicated that the monetary policies of central banks and major worldwide will remain an important factor must be monitored for its impact on the oil markets during the current year, pointing out that the lifting of the Federal Reserve (Fed) rates expected interest rates by the end of the first half will continue to affect the growth of the global economy .
The report pointed out that the rise of power in the US dollar against other currencies has been one of the factors causing the recent drop in oil prices, noting that the decline of the euro and the yen and a number of currencies of emerging markets still have a positive impact so far been limited to oil demand. The report noted that raising interest rates in the United States will make borrowing for various industries, including the oil industry more expensive costs, adding that some of the risks faced by the oil demand growth in both emerging and developed markets, may come from the United States decision to raise interest rates at a time early or faster than expected, which will lead to the withdrawal of huge capital flows from these countries and therefore this will affect the economies and rates of demand for oil.
For his part, director of the Russian oil company to Walk Oil said that “the price of a barrel of oil could fall to $ 25 after losing half its value since June.
Faguyt Alekperov said he “could fall even $ 25.”
Director-General of major Russian companies of energy for the second predicted that the oil market remains volatile throughout the year.
In Russia, which has oil and gas provides the bulk of its revenue, has led to a deterioration of the oil decline rate of the ruble, which also influenced by Western sanctions related to the Ukrainian crisis.
In the case of oil stay at this low level, the Russian authorities warned that the country will suffer from a large budget deficit and a decline in gross domestic product could be up to 5% in 2015.
Oil prices have fallen about 60 percent over the past six months, and are trading crude measurement of global currently below $ 50 a barrel, with the supply of light crude higher quality than the United States and Canada exceeds demand, at a time of weakness in global economic growth.
It is noteworthy that OPEC produces about a third of the world’s oil needs, and was founded in September 1960 in the Baghdad Convention signed by Iraq, Iran, Kuwait, Saudi Arabia and Venezuela, and then joined the rest of the Member States, respectively, and is headquartered in Vienna.
And dominated the differences between the Member States of the OPEC during the last period at the low price of oil, on the one hand demanding Iraq and Saudi Arabia, the UAE and the Gulf countries rich not to cut production in order to maintain market their shares and face increased production by non-members of OPEC, while you see Iran and Venezuela, countries other organization that, OPEC production cuts to halt the decline in prices to the detriment of its budget sharply.
OPEC currently includes Iraq, Iran, and Saudi Arabia, and the UAE, Angola, Kuwait, Qatar, Venezuela, Ecuador, Libya, Algeria, and Nigeria. Ended 21 / l
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