OPEC Secretary General Abdalla Salem El-Badri, speaking to
global economic officials gathered in Washington, said there are signs global
growth is sputtering now that many countries are ending their stimulus efforts.
"The impact of slowing economic recovery on oil demand
is already evident, as growth in oil consumption is easing in some parts of the
world," said the head of the Organization of Petroleum Exporting
Countries.
"Next year, the situation is not expected to improve
considerably. In fact, world economic growth is projected to be lower than in
the current year. Thus, continued slow growth in oil demand is expected in 2011
at around 1 million barrels per day, in line with the growth level of the
current year."
Moreover, he said much of the demand is coming from
developing countries including China, India, and some in the Middle East and
Latin America.
El-Badri, speaking at annual meetings of the International
Monetary Fund and World Bank, said crude oil prices have been relatively stable
in the past 12 months, holding in a range of $70 to $85 a barrel following
extraordinary volatility in the prior period.
But he added that "downward pressure on oil prices has
been noticeable in light of the uncertain pace of the economic recovery as well
as persistently weak oil market fundamentals."
Meanwhile, Iran's OPEC governor said oil prices were
"nominal" and the crude market was oversupplied, the Students News
Agency ISNA reported on Saturday.
"The prices of oil in the market which stood between
$70 to $80 ... are nominal and not real ... There is an oversupply in the oil
market consequently some countries are stockpiling oil or its
derivatives," Mohammad Ali Khatibi told ISNA.
"If we compare the current prices with the prices a few
years ago, the real prices will stand at a maximum of $50 a barrel."
Oil prices have recovered from just above $30 a barrel in
December 2008 and are trading above the $70-$80 range OPEC has said is
acceptable for consumers and producers.
Khatibi also said some OPEC members believed prices were
still "very low".
The OPEC meets to review oil output policy in Vienna on Oct.
14.
The 12-member producer group has held its supply target
steady since announcing a record output cut in December 2008.
Though official policy is unchanged, members' compliance
with output targets slid to as low as 50 percent this year from 80 percent in
April 2009. In the last two months, compliance has risen slightly and reached
57 percent in September.
