Posted on 08/09/2011 7:03:32 AM PDT by thackney
The Organization of the Petroleum Exporting Countries foresees slightly lower world oil demand growth.
In its monthly Oil Market Report released today, the OPEC said demand for crude was expected to reach 88.14 million barrels per day or mbd in 2011, down from a previous estimate of 88.18. For next year, demand projections was trimmed to 89.44 mbd from 89.50 mbd.
"Dark clouds over the economy are already impacting the market's direction," OPEC said in the report
Despite revising demand growth slightly downward, the OPEC predicted that the world's appetite for crude will show an increase of a daily 1.2 million barrels this year over last year and 1.3 million barrels a day in 2012 compared to this year.
While major consumers like the U S and the European Union may return to recession, any significant growth in demand will come from other regions, OPEC noted in its monthly report.
What your prediction for WTI? With demand going down and new wells coming on line I think we’re looking at low gas prices by the end of the year.
I don’t pretend to be able to predict oil prices.
Knowing the oil industry is not the same as being able to predict the market. When political decisions over debt can greatly affect it, predicting it is just throwing darts.
I wouldn’t be going long on oil futures.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.