The Organization of Petroleum Exporting Countries said Friday weakening world economic growth and demand prospects and ongoing increases in U.S. and European crude and gasoline inventories could soon force the producer group to pare back its own production to avert a drop in crude prices.
"These unfolding developments in the world economy and the oil market warrant close monitoring in the months ahead to ensure a timely response to changing conditions," OPEC said.
The group, in its February oil market report, said current production from all 13 OPEC nations currently stood at about 32 million barrels a day. This level should result in rising global oil inventories in coming quarters.
Such stock increases were already apparent in the U.S., where commercial oil and gasoline stocks are now back above the five-year average following a steady draw down in December, OPEC said.
The group, whose output meets about four out of every 10 barrels consumed globally every day, shaved its forecast for 2008 global oil demand growth by 100,000 barrels a day to 1.2 million barrels a day, up 1.4% from 2007. Total crude consumption globally this year is expected at 87 million barrels a day.