OPEC: Crude Output Growing, Oil Demand Outlook Uncertain

The Organization of Petroleum Exporting Countries said in its monthly report Tuesday that its oil production increased to 29.6 million barrels a day in June, 0.5 million barrels a day

higher than May, as Saudi Arabia and other Arab members in the Gulf region raised their output.
The report, prepared in the month following a deep rupture in OPEC at its Vienna meeting over whether to increase production quotas, will give ammunition to both sides of the split.
OPEC reiterated its view there will be a big seasonal upswing in demand later this summer. Even after the production increase from the Gulf countries, which was opposed by the majority of OPEC members, the world will still need an additional 1.4 million barrels a day of oil from the group in the third quarter to fully meet this demand, the report said.
The report also gave some support to opponents of the production increase, led by Iran and Venezuela, who have voiced doubts over the strength of demand.
OPEC trimmed its forecast for demand growth this year to 1.36 million barrels a day, from 1.4 million barrels a day previously. It also warned that demand growth could fall by a further 0.2 million barrels a day this year if developed economies continue to weaken.
However, the report also warned that if oil prices rise higher, they could also trigger a similar drop in demand.
Source: Dow Jones