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OPEC sees economic gloom bottoming out

Oct. 11, 2012 at 8:18 AM   |   Comments

VIENNA, Oct. 11 (UPI) -- Though the global economy is in decline, the world's oil demand for 2013 remains steady suggesting a leveling in international markets, OPEC said.

The Organization of Petroleum Exporting Countries, in its monthly report for October, said global economic growth for 2012 was revised downward 0.2 percent to 3.1 percent.

For world oil demand, OPEC said it expected to see demand increase 800,000 barrels per day in 2013, unchanged from the previous month's report. Demand for OPEC crude next year is expected to average 29.8 million bpd, a 300,000 bpd decline from 2012.

"The projections for global oil consumption continue to be affected by the uncertainties facing the world economy," OPECl said. "The combination of an austerity-driven eurozone, the weakening recovery in Japan, and clear signs of a slowdown in major emerging economies have been the main factors behind this development."

In terms of the U.S. market, OPEC said the economy there was "below potential" with deceleration forecast for next year. While China's economy is expected to expand 8 percent next year, Japan's economy is expected to contract a full percentage point to 1.1 percent growth in 2013 compared to this year.

"Despite the prevailing weakness in the world economy, the slowing momentum is expected to bottom out later this year," the OPEC report stated.

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