OPEC Cuts Russia’s Oil Forecast Blames Geopolitical Crisis

The Organization of the Petroleum Exporting Countries (OPEC) slashed its oil supply forecast for Russia next year and said continued geopolitical uncertainty was limiting its prospects for economic growth.

OPEC, which represents oil-exporting nations, now forecasts Russia will supply 10.51 million of barrels of oil per day (mb/d) on average in 2015, down from the 10.53 million it predicts for 2014.

It also lowered Russia’s GDP growth forecast to 0.3 percent in 2014 and 1.1 percent in 2015.

“Continued geopolitical uncertainty is increasingly limiting the prospects for economic growth, amid currency depreciation, high inflation and poor growth in retail sales. The expected second round of EU economic sanctions would make faster GDP growth even less likely,” OPEC said in its monthly oil market report published on Wednesday.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza