OPEC cuts forecast for world oil demand for 7th time
Friday, 17 October 2008
VIENNA, Oct. 16 (Xinhua): The crude oil demand for the Organization of the Petroleum Exporting Countries (OPEC) on the international crude market is forecasted to be 31.14 million barrels per day in 2009, 190,000 barrels lower than September forecast , according to a monthly OPEC report released yesterday.
This forecast on international crude oil demand shows 190,000 barrels per day further lower than that of last monthly report of OPEC, dropping for seven consecutive times this year.
The report said the global financial crisis would impose an obvious suppressing effect on the growth of the world economy. Countries of Organization for Economic Cooperation and Development (OECD) have seen a current slowdown in economic growth, and the economic growth of developing counties has also decelerated. The worldwide weakening economy will definitely cut crude oil demand.
The OPEC oil prices topped 140.73 U.S. dollars per barrel on July 3 this year, but dived to 71.96 dollars per barrel Monday, making a drop of almost 49 per cent. Meanwhile, the prices on the international crude market also touched the bottom recently over one year's time.
It is widely believed that the main reason for the current international oil price drop is a lowered expectation on the economic growth of western industrialized countries. The financial crisis in the United States imposed great pressure on the world's economic growth.
Some internationally known economic research institutions even said in a certain sense, industrialized countries like the United States, the European Union have already slipped into economic recession. Under this background, the International Energy Agency (IEA) lowered its forecast on the growth of world crude oil demand for 2008 and 2009 on Oct. 10.
Facing the constantly declining international oil prices, OPEC has decided to hold an extraordinary meeting on Nov. 18 searching for solutions. High ranking officials from many OPEC member states including Iran, Venezuela and Algeria have noted that OPEC should cut production so as to ensure international oil prices on a certain bottom line.
This forecast on international crude oil demand shows 190,000 barrels per day further lower than that of last monthly report of OPEC, dropping for seven consecutive times this year.
The report said the global financial crisis would impose an obvious suppressing effect on the growth of the world economy. Countries of Organization for Economic Cooperation and Development (OECD) have seen a current slowdown in economic growth, and the economic growth of developing counties has also decelerated. The worldwide weakening economy will definitely cut crude oil demand.
The OPEC oil prices topped 140.73 U.S. dollars per barrel on July 3 this year, but dived to 71.96 dollars per barrel Monday, making a drop of almost 49 per cent. Meanwhile, the prices on the international crude market also touched the bottom recently over one year's time.
It is widely believed that the main reason for the current international oil price drop is a lowered expectation on the economic growth of western industrialized countries. The financial crisis in the United States imposed great pressure on the world's economic growth.
Some internationally known economic research institutions even said in a certain sense, industrialized countries like the United States, the European Union have already slipped into economic recession. Under this background, the International Energy Agency (IEA) lowered its forecast on the growth of world crude oil demand for 2008 and 2009 on Oct. 10.
Facing the constantly declining international oil prices, OPEC has decided to hold an extraordinary meeting on Nov. 18 searching for solutions. High ranking officials from many OPEC member states including Iran, Venezuela and Algeria have noted that OPEC should cut production so as to ensure international oil prices on a certain bottom line.