energy information administration short term outlook july 2001 1 overview opec and world oil prices since it is clear that does not intend to increase production quotas at this time we presume the weakening in has developed mid june likely diminish may strengthen over course of rest summer such a development seems even though iraq agreed resume un supervised exports assume for base case projection total crude will be about 27 3 million barrels per day third quarter while represents 6 above estimated level due s disruption supplies only 200 000 second average there should enough demand growth absorb implied output reduce extent which inventories have risen year ago levels figure spot market price west texas intermediate wti averaged 60 barrel down from 28
