Opec cuts 2005 oil demand forecast

Opec today trimmed its forecast for 2005 world oil demand growth and blamed record high oil prices.

Opec today trimmed its forecast for 2005 world oil demand growth and blamed record high oil prices.

In its monthly report, Opec cut its demand growth forecast for 2005 to 1.2 million barrels per day (bpd) and said it expected growth to recover to 1.5 million bpd next year.

"There is enough evidence to indicate that oil demand growth will probably slow down further in the months to come and it is likely that consumption growth will be further revised down as we approach the end of the year," Opec said.

By contrast, the International Energy Agency (IEA) was less pessimistic - cutting demand growth this year by only 90,000 bpd to 1.26 million bpd.

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The energy watchdog said the hurricanes' worst effects on demand were behind world markets.

Opec also reduced the requirement for its crude during the fourth quarter of this year by 300,000 bpd to 30 million bpd.

The cartel is now pumping 30.3 million bpd, it said. Opec revised down demand for the group's crude in 2006 by 400,000 bpd to 28.5 million bpd.

Opec revised down non-Opec supply growth by 113,000 bpd - with supplies growing 490,000 bpd versus last year to 50.3 million bpd.