The OPEC oil cartel, happening this week in Vienna, is expected to hold production levels unchanged as it is trying to balance a weak economic outlook and popular unrest in the Middle East which has slashed output from Libya.
The International Energy Agency has called upon OPEC to increase its output and prevent another damaging hike in the prices, with seasonal demand set to strengthen in the coming summer months. The 12-nation group which meets 40 percent of the world?s oil demand is surrounded with fear of increasing crude oil prices which could further dent faltering world economic growth and energy demand.
“I would expect OPEC to leave quotas unchanged, rather than raise them, given the growing evidence that global demand is slowing,” said Capital Economics analyst Julian Jessop. “There is speculation in the market that they will be doing something to acknowledge the supply problems in Libya. Regardless of what OPEC happens to do; prices have further to fall,” he added, in regards to the recent weak economic data in top oil consumer in the United States.