(1888PressRelease)
September 04, 2007 - The US subprime mortgage market crisis is impacting on the demand for oil, it has been revealed.
The ramifications of the subprime mortgage turmoil, along with labour market concerns, have combined to dent US consumer confidence and Opec secretary general Abdullah al-Badri believes this in turn has affected oil demand outlook.
"The situation in the past couple of weeks has become a lot more serious," Mr Badri told Reuters.
Expanding further on Opec's position, Mr Badri revealed that the body considered the international oil market to be well suitably supplied, intimating that supply levels would be maintained following the group's next meeting on September 11th.
However, Opec's perceived position is at odds with some independent analysts who consider the market to be under-supplied.
"At the moment, oil is quite insulated from what is happening in the equity and credit markets, by all accounts the market is very tight," ANZ analyst Andrew Harrington commented, according to the news provider.
Meanwhile, Bloomberg reports suggest the price of oil dipped this week as a result of news that US sales of previously owned homes fell in July - although a rally was staged amid reports of a shortage of gasoline.br>
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