OPEC Monthly Oil Report May 2012 – Oil Market Highlights:

• “After three consecutive monthly gains, the OPEC Reference Basket declined in April to settle at $118.18/b, representing a drop of $4.79 or 3.9%. Prices remain elevated by the risk premium
  associated with ongoing geopolitical factors. The decline in the value of the Basket came with the start of the first month of the typically low demand season in the second quarter.

• World economic growth expectations for 2012 remain unchanged at 3.3%. The US continues to enjoy solid momentum, with the growth forecast revised up by 0.1 pp to 2.3%. In contrast, the Eurozone continues to weaken and is now expected to contract by 0.4%, compared to the minus 0.3% forecast in the previous month. The growth forecast for Japan remains unchanged at 1.8%.
• World oil demand growth in 2012 now stands at 0.9 mb/d, broadly unchanged from the previous report. Given the stabilization of the US economy and the shutdown of Japanese nuclear power plants, world oil demand growth has – at least for the short-term – stopped its declining trend and is showing some growth.”