OPEC Sees Ample Crude Stocks to Cover Demand (15/05/2007)

Τρι, 15 Μαΐου 2007 - 13:31
OPEC said on Tuesday that crude oil inventories were more than enough to cover fuel demand during the peak summer travel season, rebuffing calls from consumers for more supply. The monthly report from the Organization of the Petroleum Exporting Countries also showed members were keeping a lid on supply, despite a rise in prices to above $66 a barrel from about $50 in January. "Heading into the driving season, crude oil stocks are more than adequate to meet expected demand. However, gasoline stocks are low for this time of year," OPEC's report said. "As always, OPEC continues to monitor market developments ahead of its planned meeting in September, which will focus on the coming winter season." The outlook from OPEC, source of more than a third of the world's oil, follows a call on Friday from the International Energy Agency for the group to boost oil output before the summer. The IEA, adviser to 26 industrialized nations, said gasoline supplies in top consumer the United States have sunk to a 16-year low for the time of year, pushing pump prices above $3 a gallon to near-record levels. But the report by economists at OPEC's Vienna headquarters said rising gasoline imports by the United States would ease concern about fuel supplies. "The next few weeks will be crucial as refineries return from maintenance and increased imports allow US gasoline stocks to rebuild," said the report. "Indeed, if gasoline imports remain above 1 million bpd in the coming weeks, this should be sufficient for stocks to return to adequate levels, helping to ease the perceived market tightness." OPEC also left expected global growth in oil demand in 2007 steady at 1.3 million bpd, or 1.5 percent. It put 2007 demand for OPEC crude at 30.33 million barrels per day, up from 30.28 million bpd previously expected, reflecting lower-than-expected supply from non-member countries. Oil ministers from OPEC opted to maintain supplies at a meeting in March. At their two previous meetings, they agreed to curb output by 1.7 million bpd, roughly six percent. Industry estimates show that OPEC has delivered on about 1 million bpd of the pledged cutback. Tuesday's report showed little change in supplies last month. The 10 OPEC members, all excluding Iraq and Angola, bound by production cut deals pumped 26.448 million bpd in April, up 31,000 bpd from March, the report said, citing data from secondary sources. (Reuters, 15/05/2007)