OPEC to meet May 31 to consider output

OPEc oil13 May 2013, Houston – The Organisation of the Petroleum Exporting Countries, OPEC, will be meeting on May 31 to consider its output.

This came as the organisation said in its monthly report at the weekend said forecast 2013 demand for its crude will average 29.84 million barrels per day, mbd, up 90,000 barrels per day from a previous estimate.

It said both world oil demand and demand for its crude will increase in coming months.

But, on the international market, Monday, oil prices fell amid fears of possible slowdown in demand growth from the world’s top oil consumer, the US.

Brent crude slipped 77 cents to $103.14 a barrel early on Monday. It settled down 56 cents on Friday and ended the week lower after gains in the previous two.

US oil fell 85 cents to $95.19, sliding the fourth time out of the past five sessions.

Brent is expected to revisit its 10 May low of $101.56, as a downtrend from the 7 May high of $105.94 has not finished, while US oil is expected to retest support at $93.58, according to Reuters technical analyst Wang Tao.

The US economy is expected to grow at a slower pace in the second and third quarters of this year, according to the Philadelphia Federal Reserve’s quarterly survey of 42 forecasters, compared with their previous estimates.

Additional pressure for risk assets such as oil came from a broad rally in the dollar following strong data on the US labour market.

About the Author