UAE Non-Oil Private Sector Expanding: OPEC

VIENNA, October 12th, 2018 (WAM) — Operating conditions in the United Arab Emirates (UAE) non-oil private sector remained in expansion territory in September, even improving from August’s strong performance, according to the OPEC’s Monthly Oil Market Report – October 2018.

Citing the Emirates NBD Purchasing Managers Index, OPEC said the index posted 55.3 in September, up from 55.0 in August. “This signals a steady expansion in the non-oil private sector in Q318. Y-t-d, the PMI has averaged 55.7, similar to the same period last year,” said the report.

With regards to crude prices, the report said that the OPEC Reference Basket increased sharply by almost 7%, or $4.92 m-o-m, to average $77.18/b – the highest since October 2014.

“Crude oil futures prices also increased for the month, mainly supported by geo-political tension, growing concerns over a shortage in global oil supply and low US oil inventories.”

The global economic growth forecast for 2018 was revised down slightly by 0.1 percentage point (pp) to now stand at 3.7%, due mainly to slowing growth in some emerging and developing economies, said the report, adding that the 2019 forecast remains unchanged at 3.6%.

“In 2018, world oil demand growth is estimated at 1.54 mb/d, following a downward revision of around 80 tb/d from the previous month’s assessment, mainly to reflect the most up-to-date data in OECD Europe and the Middle East, as well as the latest developments in the economies of Latin America.” (WAM)