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OPEC says oil price drop hits other producers much quicker than thought
February 9, 2015 / 11:47 AM / 3 years ago

OPEC says oil price drop hits other producers much quicker than thought

LONDON, Feb 9 (Reuters) - OPEC sharply raised a forecast of demand for its own oil in 2015, saying the halving in prices since June would slow production in the United States and other countries faster than previously thought.

In a monthly report issued on Monday, the Organization of the Petroleum Exporting Countries (OPEC) forecast demand for the group's oil will average 29.21 million barrels per day (bpd) in 2015, up 430,000 bpd from its previous figure.

OPEC slashed its forecast for the rate of growth in non-OPEC supply by 420,000 bpd from last month's report to 850,000 bpd, partly due to a slowdown in the U.S. shale boom and lower capital investments by energy firms, arguing lower prices will also boost consumption.

"(Lower non-OPEC supply is) mainly due to announced capital expenditures cuts for 2015 on the part of international oil companies, as well as a decline in the number of active drilling rigs in the U.S. and Canada," it said.

OPEC lowered its forecast of total U.S. oil supply in 2015 by 170,000 bpd, having already lowered it by 100,000 bpd last month. It also lowered its forecast for output in Russia by 70,000 bpd from last month and by a similar amount for Middle Eastern countries outside the group. (Reporting by David Sheppard; additional reporting by Himanshu Ojha and Ron Bousso, editing by William Hardy)

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