OPEC unlikely to boost supply

Dubai, United Arab Emirates -- World economic growth concerns cloud the outlook for oil demand, reducing the chance of more crude being pumped to ease high prices, OPEC ministers say.

The 12-member Organization of Petroleum Exporting Countries, which accounts for roughly 40 percent of the world's oil, said in its monthly market report a "more bearish economic trend," triggered in part by U.S subprime lending woes, may hurt demand in the second half, The Wall Street Journal reported Tuesday.

OPEC leaders said they expect daily demand for their crude to average under 30.8 million barrels in 2008, 239,000 barrels a day lower than the 31 million barrels a day predicted for this year.

Uncertainty about demand, combined with falling U.S. refinery margins as the summer driving season winds down and autumn refinery maintenance kicks off, also may contribute to weakening demand for crude in the second half, OPEC said.

Analysts said the report indicates the group is unlikely to boost output.
The report is OPEC's last before it meets Sept. 11 to set supply policy.

Copyright 2007 by United Press International.