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OPEC maintains global economic outlook, oil demand and supply fo


(EnergyAsia, October 30 2014, Thursday) — Maintaining its outlook for the global economy, the Organisation of Petroleum Exporting Countries (OPEC) has also retained its latest forecasts for world oil demand and supply for 2014 and 2015 unchanged from its previous report in September.

In its October report, the cartel said it expects the world to consume 91.19 million b/d in 2014 and 92.39 million b/d next year.

OPEC expects the world economy to grow by 3.2% and 3.4% over the next two years, little changed from its forecasts of the last three months. The forecast was made before the US Federal Reserves confirmed its widely expected decision to cease its monthly bond purchase programme that was launched to stimulate the global economy shortly after the financial crisis began in 2008.

The Fed said its move to stop “quantitative easing” this month was in line with the market’s growing confidence in the US economic recovery, although many continue to worry about Europe and Japan.

The developed economies and most of Asia are poised to benefit from the sharp decline in oil prices which are expected to remain weak through the rest of the year. Brent crude has plunged from a high of US$115 per barrel to less than US$84 on October 15. In separate reports released this week, Goldman Sachs and Barclays predict crude prices could plunge to the US$70/barrel range next year.