OPEC reference basket rises, but world oil demand faces uncertainty

09 August 2012 12:42  [Source: ICIS news]

LONDON (ICIS)--The OPEC Reference Basket rebounded from a three-month-long decline in July to settle near $100/bbl, almost 6% above the previous monthly level, according to OPEC’s monthly oil market report released on Thursday.

Crude oil futures prices were seen to have recovered from the low levels reached in June, although most of the fundamental reasons behind the fall remained in play as the greater uncertainty for the economic outlook persists and global crude inventories remain high.

World economic growth was forecast to remain unchanged at 3.3% for 2012 and 3.2% for 2013. The US economy was seen to have made some marginal improvements, leading an upward revision of 0.1 percentage points to the 2012 projection, which now stands at 2.2%, while the forecast for 2013 remains at 2.0%.

The forecast for global oil demand growth in 2012 remains unchanged at 0.9m bbl/day. However, the report said that there was considerable uncertainty surrounding the forecast for world oil demand growth in 2013, which remains unchanged at 0.8m bbl/day.

Total OPEC crude oil production averaged 31.19m bbl/day in July, down by 0.16m bbl/day from the previous month. Crude oil output experienced a decrease from Iran, Saudi Arabia, Libya and Angola, while production increased in Iraq and Kuwait.

According to secondary sources, OPEC crude production, not including Iraq, stood at 28.12m bbl/day in July, a drop of 0.27m bbl/day from the previous month.

By: Tony Dillon
+44 20 8652 3214

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