Opec lowers 2007 demand forecast

London: Opec yesterday dismissed calls to pump more crude, saying supply was enough and demand for its oil this year would be less than previously forecast.

In its April monthly oil market report, Opec cut the forecast for demand for its oil in 2007 by 120,000 barrels per day to 30.28 million bpd and said pumping more crude would not solve gasoline supply problems.

"In contrast to the current tightness in the gasoline market, global crude oil fundamentals appear to be largely in balance at current Opec production levels," the report said.

"Given ample crude supplies, it is clear that increasing production would only serve to build crude oil inventories and would not resolve the tightness in the downstream."

The drop in Opec's forecast for demand for its crude in 2007 stems from an increase in its expectation for supply from non-member countries, such as Mexico.

Non-Opec supply is expected to average 50.72 million bpd this year, up 1.26 million bpd from 2006 and 83,000 bpd higher than expected last month.

Opec's report showed that the group, source of more than a third of the world's oil, is still removing barrels from the market following agreements last year to trim supply.