OPEC sees weaker oil market next year

LONDON (Reuters) –
OPEC on Monday said the fundamentals of the world oil market show signs of weakening in 2007 as economic growth slows and supply from non-OPEC countries rises faster than global demand.

In a monthly report, the group that pumps more than a third of the world’s oil held its forecast for global demand growth at 1.3 million barrels per day and said a weakening U.S. economy posed risks to the outlook.

“Risks for oil demand appear to be more weighed on the downside, given the dangers to global economic growth emanating from a visibly weakening U.S. economy,” OPEC said of the 2007 forecast.

The report follows a deal last week by the Organization of the Petroleum Exporting Countries to cut supply by 500,000 barrels per day, or two percent, from February 1 to prop up prices when the northern hemisphere winter is ending.

Reuters