OPEC cuts oil demand projections amidst price fall

16 August 2008

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.