Let's then turn around to the macroenvironment, where the continuing Eurozone crisis, coupled with the disappointing numbers from China and the U.S., has led to downward revisions of the outlook for GDP growth and oil demand. High production output from OPEC also lead to a period of crude inventory buildup during the quarter, which, together with fares or lower demand, brought Brent crude prices briefly below $90 before recovering.
At the same time, global spare capacity for oil is at the lowest level for 5 years and there continue to be a risk of potential production disruption from geopolitical events.
The situation in the global economy remains unsettled, and it seems increasingly clear that the present macro uncertainties will remain for a considerable period of time.
In this environment, we believe Brent crude prices, in general, will be supported around current levels, although they could be subject to periods of considerable volatility. Continued macro uncertainty coupled with price volatility could make customers more cautious in terms of future activity plans. However, in the international markets, we have seen no signs of this so far. We maintain, absent a future significant setback to the world economy, our safety view that international activity will grow in excess of 10% this year.