OPEC's outlook
In its latest monthly market report, the Organization of Petroleum Exporting Countries still sees world economic growth at 3.9% in 2008, unchanged from the previous month amid signs that the credit crisis may be easing. Forecasts for Japan were revised slightly up, while those for the "euro zone" were slightly down. OPEC's forecast for US economic growth was unchanged at 1.1%.

"In the narrow technical sense, the US is not yet in recession. Advance figures for US gross domestic product in the first quarter still indicate positive growth, albeit at a meager 0.6% yearly rate, mainly on continued strength in exports and a rise in inventories. US payrolls in April fell for the fourth month, but the loss of 20,000 jobs was much smaller than the average of 80,000/month in the first quarter of 2008," said OPEC analysts. "Overall, the better-than-expected data and signs that the Fed's easing cycle were at an end helped lift the dollar from its lows vs. the euro and yen. Inflation continued to trouble China, India, and other emerging markets and could dampen growth in the months ahead."