The Organization of the Petroleum Exporting Countries (OPEC) how lowered its forecast for demand worldwide, citing a slowdown in Latin America and milder winter temperatures.

OPEC dropped its demand forecast by 50,000 barrels a day, despite an increase in output – OPEC pumped 32.25 million bpd in March, the group said citing secondary sources, up about 15,000 bpd from February.

Their monthly report suggests a 790,000-bpd excess supply in 2016 if output continues at the current rate, up by 30,000 on last month’s report. OPEC added that the oil market is likely to get a boost form the summer “driving season”, but warned:

“However, unlike in the previous year, OECD gasoil demand may not have sufficient strength to offset the continued slowdown in non-OECD consumption,” it added.

The price of oil and excess demand are due to be discussed at a summit held in Qatar in the coming weeks, which if an agreement is reached, may bring stability to prices.

13/04/2016