OPEC Predicts Lesser Production in 2012

As per Organization of Petroleum Exporting Countries (OPEC) monthly report world oil demand next year would reach 88.87 million barrels per day (bpd), as in current year it is about 89.01 million bpd. Slightly lower estimated forecast has been made for 2012 in the ongoing Vienna summit, amid tensions over Iran and slower global growth rate are the key reasons for this number. Due to economic crisis at US & Euro zone along uncertainty at Middle East, 2011 demand remained unflexible & virtually unchanged at 87.80 million bpd. It is expected that year-on-year demand to grow by 860,000 bpd this year from 86.93 million bpd in 2010 and by 1.07 million bpd next year, according to OPEC.

Press Release:

The adjustment reflects slowing growth in the OECD, which is expected to have spillover effects for China and India, and hence impact oil consumption over the coming year,” the cartel said. “slowing economic growth and the uncertain outlook for the global economy in the coming year highlight increasing risks facing the oil market in 2012.” Courtesy: NDTV PROFIT

During recently held gathering at Vienna ahead of a cartel meeting, everyone on table to decide whether to change production level at the time of Iran tensions, higher Libyan output and a weak economic output. Figures look quite lucrative if we compare to UN global projections of economic growth rate. That shortfall will also appear here in the crude production. Current dollar rate has already put importing countries on pricing crisis. Since in country like India, crude getting costlier day by day even levy taxes also too much.

At the age of environmental threats, crisis of the debt-hit eurozone has slowed the overall market performance index, while Japan and the United States had also seen similar downward growth for next year. Unbalanced world cann’t escape from crisis even middle regions like India & China also undergo similar economic and liquidity shocks.

Image Source: evworld.com

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