The International Energy Agency (IEA) on 9 August 2013 in its monthly oil market report issued a warning that oil supplies from the Organization of Petroleum Exporting Countries (OPEC) may decline because of the conditions prevalent in Libya and Iraq. Apart from this IEA also gave its forecast that the global oil demand by end of 2013 reach up to 29.8 million barrels per day.
The estimation was made based on the expectation that the oil demand will increase by around 200000 barrels per day in 2013.
The report of the agency also made a prediction that in 2014, the growth in demand of the Iraqi and Libyan oil will go down by around 100000 barrels per day and would reach a mark of 1.11 million barrels a day.
The report has highlighted that the protests in Libya has helped the production of oil to fall by 400000 barrels per day in the first week of August 2013, as compared to 1 million barrels per day in July 2013. Whereas, for the first time the oil supply in Iraq has gone down below 3 million barrels per day over a period of five months in July 2013. This happened following the attacks on the major pipelines. The report also stated that the infrastructure development works being undertaken in Iraq may hit the output production and allow it to fall by another 500000 barrels per day in September 2013.
Apart from all this, the report from the agency also highlighted that the oil output of Saudi Arabia has also gone up to its highest point in a year. It says that strong supply growth from non-OPEC producers could lessen the supply issues forced from the OPEC supply issues.
Organization of Petroleum Exporting Countries (OPEC)
OPEC is a permanent intergovernmental organization of 12 oil-exporting developing nations that coordinates and unifies the petroleum policies of its Member Countries. The OPEC Secretariat is the executive organ of the Organization of the Petroleum Exporting Countries (OPEC). Located in Vienna, it also functions as the Headquarters of the Organization, in accordance with the provisions of the OPEC Statute.
OPEC) was founded in Baghdad, Iraq, with the signing of an agreement in September 1960 by five countries namely Islamic Republic of Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. They were the Founder Members of the Organization and later the group was joined by Qatar (1961), Indonesia (1962), Libya (1962), the United Arab Emirates (1967), Algeria (1969), Nigeria (1971), Ecuador (1973), Gabon (1975) and Angola (2007).
These countries were later joined by Qatar (1961), Indonesia (1962), Libya (1962), the United Arab Emirates (1967), Algeria (1969), Nigeria (1971), Ecuador (1973), Gabon (1975) and Angola (2007). At present Gabon and Indonesia is not the member of the group as they terminated their membership in 1995 and 2009 respectively.