Opec stated yesterday that they felt oil prices would remain at between $70 and $80 for the foreseeable future provided the economic forecast continued to be favorable.
In their monthly report Opec predicted that world oil demand would increase by 900,000 barrels per day in 2010 and this is actually 20,000 barrels per day higher that they had previously thought which is also higher than the demand that had been previously predicted for the year.
However conditions in the world economy are also better than predicted which the report states will keep oil prices constant at between $70 and $80 per barrel.
Opec also cited an increasingly favorable outlook for the US economy from positive information reported about their recent manufacturing, employment and financial data should help to keep demand stable.
The International Energy Agency are even more optimistic than Opec that demand will increase because of new emerging markets that could even cause oil consumption to reach a new high level during 2010.
Most of the extra demand for oil will be supplied by countries outside of those currently in Opec and the report said supply by this sector would increase by approximately half a million barrels per day and this in an increase of 90,000 barrels per day from last months estimate.Andrew Reid, Staff Writer, Gulf Jobs Market News