OPEC sees less demand for its oil in 2015

Published: Dec 10, 2014 6:54 a.m. ET

OPEC cut its collective oil output to just above the producer group's targeted production ceiling last month, but said it expects demand for its oil to be further below the level at which it is currently pumping next year.

In its latest monthly report, the Organization of the Petroleum Exporting Countries said its collective crude-oil production declined by 390,100 barrels a day to 30.05 million barrels a day in November, compared with October. That is just a touch above OPEC's output ceiling of 30 million barrels a day--a level the cartel agreed to stick to at a meeting in Vienna last month, despite calls from some of its members for more dramatic production cuts to counter the sharp fall in oil prices since the summer.

OPEC also forecast that demand for its oil would drop to 28.9 million barrels a day next year, compared with 29.4 million barrels a day in 2014.

The drop in OPEC's November production was driven largely by lower Libya crude output, which OPEC said fell by about 248,300 barrels a day to 638,000 barrels a day. Saudi Arabia's November output fell by 60,100 barrels a day to 9.59 million barrels a day, while Kuwait output dropped by 59,400 barrels a day to 2.69 million barrels a day, the report said.

OPEC bases its output figures estimates on secondary sources, such as shipping trackers and energy consultancies.

Brent crude was down around 1.5% to $65.8 per barrel on Wednesday morning before the OPEC report's release.

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