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OPEC Warns of Slowing Asian Oil Product Demand

OPEC Warns of Slowing Asian Oil Product Demand
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Πεμ, 10 Οκτωβρίου 2013 - 18:51
The Organization of Petroleum Exporting Countries Thursday warned of signs that demand for oil products in Asia, one of the major drivers of the market in recent years, are slowing.
The Organization of Petroleum Exporting Countries Thursday warned of signs that demand for oil products in Asia , one of the major drivers of the market in recent years, are slowing.

In its closely watched monthly report, OPEC said global product markets will see pressure over the coming months as a result of efforts by Asian governments to curb subsidies on oil products and encourage the use of alternative fuels for power generation.

"Global product markets are expected to come under pressure over the winter season. The combination of sluggish demand and increasing product supplies are likely to dampen margins, leading to lower refinery runs over this period," OPEC said in its report.

The organization maintained its forecasts for oil demand growth this year and next and slightly raised its forecasts for growth in non-OPEC oil supply, largely as a result of surging production in the U.S. According to OPEC , U.S. oil production is expected to average 11 million barrels a day this year, its highest annual level since 1973.

OPEC increased its expectations for 2013 non-OPEC supply growth by 60,000 barrels a day to 1.14 million barrels a day and increased its 2014 forecast by 50,000 barrels a day to 1.21 million barrels a day.

OPEC's own production fell by 390,000 barrels a day last month to 30 million barrels a day, according to secondary sources. The decline was largely the result of a sharp drop of 370,000 barrels a day in Iraq 's supply. Iraq is currently conducting maintenance at one of its export terminals that has affected its production.

Separate figures reported directly by Libya also showed a decline of 190,000 barrels a day in the country's oil production last month compared to August with output averaging just 407,000 barrels a day. Output plummeted over the last two months after armed strikers forced many export terminals and oil fields to shutdown production. In early October, the Libyan oil minister said the country's oil production had bounced back to 700,000 barrels a day.

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