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Opec cuts its oil forecast again
Hugo Duncan15 Aug 2008
Opec today cut its world oil demand forecast for a fifth month as the slowdown in the global economy erodes fuel use.
The 13-member group, source of two in every five barrels of oil, also said production levels were more than adequate.
IT said higher production, easing political tensions and a stronger US dollar indicated a weaker outlook for the world oil market.
"Given these trends, risks to the outlook for the world oil market appear to be on the downside," it said in its August monthly oil market report.
"The softening economic situation has led to a further slowdown in oil demand growth."
Opec said oil demand will rise by one million barrels of oil a day this year - 30,000 fewer than its previous forecast.
It was the fifth reduction this year, after cuts in July, June, May and February.
It left its prediction for world consumption growth in 2009 unchanged at 900,000 barrels of oil a day.
