The oil producing group OPEC has cut its global oil demand growth forecast for a fourth straight month.
It says that is because of an economic downturn in developed countries and efforts by China and India to curb fuel consumption.
“The economic downturn is taking its toll on the world oil demand… The decelerating US economy, high unemployment rate and feelings of uncertainty among consumers, has damped U.S. oil demand. Similarly, debt problems in the euro zone are causing EU economies to lose some of their estimated growth this year,” OPEC said in its monthly report.
The cartel’s forecast has been reduced to below one million barrels per day for the first time this year.
Next year, OPEC still sees demand growing slightly faster.
On oil prices, the cartel said non-OPEC supply would be lower than expected this year, but demand was falling, thus reducing the pressure on OPEC to compensate for any supply loss.