The Organization of the Petroleum Exporting Countries’ latest monthly forecast sees world oil demand to grow by 900,000 barrels a day — unchanged from its previous report.
In its forecast issued Friday, OPEC said: “The weak pace of growth in the OECD economies is negatively affecting oil demand.” The forecast says that while the US economy has improved, Europe’s debt crisis “along with higher oil prices has resulted in considerable uncertainties for future oil demand for the rest of the year.” Geopolitical factors, most notably tensions over Iran’s nuclear program and speculation of Israeli military action, sent OPEC’s reference basket oil price 5.1 percent higher in February to $117.48 per barrel.
The monthly average was the highest since April last year.
Solid economic data in the US and easing worries over the euro zone debt crisis, coupled with speculative activities in oil futures markets, also served to push the price of crude higher, OPEC said.
