Friday, September 15, 2006

OPEC to cut output in 2007 due to lowered demand

That would be bad news for the energy patch and good news for consumers.
Some worldwide economic softening was acknowledged on Friday by the
Organization of Petroleum Exporting Countries, which said fourth-quarter demand for its oil would be 320,000 barrels a day lower than previously forecast, or 28.86 million barrels per day.

In 2007, OPEC expects demand for its crude to average 28.1 million
barrels per day, or 800,000 barrels per day less than the 2006 average, in part
because non-OPEC supplies are rising. As a result, some analysts believe the
Vienna-based cartel, which is pumping close to 30 million barrels a day, may end
up cutting its output by 1.5 million barrels a day or more.

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