Mumbai: The Organisation of Petroleum Exporting Countries (OPEC) has cut its forecast for global oil demand growth for a fifth month in 2008 and said production is more than adequate to meet supplies.

OPEC expects demand for its crude to average 32.05 million bpd in 2008, lower than the group's production in July of 32.64 million bpd.

OPEC has continuously been lowering demand projections in July, June, May and February.

The news comes a further fall in the prices of crude oil, which dropped below $112 a barrel on Friday - its lowest level since early May, helped by faltering demand, rising supply and a stronger dollar.

Crude has fallen despite concerns of supply disruptions in the aftermath of the Russian intervention in Georgia, a key transport point for oil and gas to western consuming centres.

Crude prices hit a low of $111.85 on Friday - its lowest since the 2 May peak of $147.27 a barrel hit on 11 July.

The 13-member cartel, which meets a fifth of the global demand for oil, said higher OPEC production, easing political tension and a stronger US dollar indicated a weaker outlook for the oil market.

"Given these trends, risks to the outlook for the world oil market appear to be on the downside," OPEC said in its Monthly Oil Market Report for August.

''The softening economic situation has led to a further slowdown in oil demand growth,''  the report said.

Oil demand will rise by a million barrels per day (bpd) this year, 30,000 bpd less than the previous forecast, OPEC said in the report.

The cartel left its forecast for world consumption growth in 2009 unchanged, predicting a rise of 900,000 bpd. It  also left its estimate for supply growth from non-member countries steady at 950,000 bpd next year.

OPEC oil ministers are scheduled to meet on 9 September.