OPEC sees weaker oil market next year

LONDON, Dec 18 (Reuters) OPEC on Monday said the fundamentals of the world oil market show signs of weakening in 2007 as economic growth slows and supply from non-OPEC countries rises faster than global demand.

In a monthly report, the group that pumps more than a third of the world's oil held its forecast for global demand growth at 1.3 million barrels per day and said a weakening U.S. economy posed risks to the outlook.

''Risks for oil demand appear to be more weighed on the downside, given the dangers to global economic growth emanating from a visibly weakening U.S. economy,'' OPEC said of the 2007 forecast.

The report follows a deal last week by the Organization of the Petroleum Exporting Countries to cut supply by 500,000 barrels per day, or two percent, from Feb. 1 to prop up prices when the northern hemisphere winter is ending.

Forecasts for 2007, including a surge in supply from non-OPEC countries of 1.8 million bpd -- the fastest growth in two decades -- point to ''weakening fundamentals,'' the report said.

Last week's decision to cut supply followed a deal OPEC implemented in November to lower output by 1.2 million bpd, the first cut in two years, to stem a slide in prices.

OPEC's report added to estimates showing that members have to cut output by the full amount promised.

The 10 members bound by supply targets, all except Iraq, lowered supply to 26.86 million bpd in November, OPEC's report said, citing secondary sources.

That was down 552,000 bpd from October and well above OPEC's target for November of 26.3 million bpd.

REUTERS SBA DB1822