DUBAI: OPEC members collectively are producing about 1 million barrels a day of crude more than needed, swelling oil stocks at a time of weak demand, Iranian OPEC governor Mohammad Ali Khatibi said on Monday.
The 12-member group is expected to stick with its target of 30 million bpd when it meets in Vienna on Wednesday, as Middle East instability keeps oil prices well above $100 despite weak demand forecasts and a build in inventories.
OPEC pumped more than 1 million bpd above its 30 million target in October and November, according toReuters surveys . It’s latest projection is that demand for its crude will average 29.7 million bpd in 2013.
“Western countries are entering economic recession, the United States has not finalized its budget and there are contending views on handling tax issue in the country,” Khatibi was quoted by Iranian oil ministry news agency Shana as saying.
OPEC experts were meeting on Monday to assess demand for the cartel’s oil and prepare a report toWednesday’s ministerial meeting.
OPEC said last month that economic weakness in some major consuming countries could shave 20 percent from its global demand growth outlook for 2013.
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