AFP reported that OPEC will likely cut its oil production next year as prices risk falling in reaction to higher output from top crude consumer the United States and amid a slowing of energy demand growth.
The Organization of Petroleum Exporting Countries decided to maintain its oil output ceiling at 30 million barrels per day which stands about 1 million barrels per day below the cartel's actual production.
At a ministerial meeting in Vienna where OPEC is based its 12 member countries also chose to re appoint Secretary General Mr Abdullah El Badri to head the organization for another year after failing to agree on a new leader.
OPEC said that the biggest challenge facing global oil markets in 2013 is uncertainty surrounding the global economy, with the fragility of the euro zone remaining a major concern. World oil demand is forecast to increase slightly during 2013 but this is likely to be more than offset by the projected increase in non OPEC supply such as from the US.
Mr Karin Kneissl analyst of independent energy market said that OPEC's overall interest is certainty in demand, and nobody can really tell whether this certainty in demand will be fully there. OPEC which includes the world's biggest oil exporter Saudi Arabia among its dozen members forecast that demand for its crude oil next year was set to contract to 29.7 million barrels per day or about 1.5 million barrels per day down on current output.
The International Energy Agency, which represents consumers, said on Wednesday that non OPEC production was expected to rise to 54.2 million barrels per day in 2013 following the highest growth rate since 2010.
Mr Julian Jessop analyst at the Capital Economics research group said that "OPEC members agree that the oil market is currently well supplied and demand for the group's crude will fall next year. The US, Canada and Mexico combined now produce more oil than the total of (Opec's) Saudi Arabia, Iraq and Iran."
