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OPEC cuts forecast for world oil demand in 2006

“This represents a downward revision of 80,000 bpd from last month’s figure due to an unexpected decline in OECD consumption in the second quarter of this year,” the Organization of Petroleum Exporting Countries said in its monthly report for August.

“North American oil demand growth for 2006 was revised down by 40,000 bpd from the previous month,” OPEC said.

The 11-nation grouping, which produces over a third of the world’s crude, added: “Second-quarter GDP data confirmed a reduction in the growth rate of the world economy despite a significant improvement in the eurozone.”

It said second-quarter growth in Japan had fallen “to 0.8 percent as result of a decline in public investment and stagnation in exports.”

In the United States, “following a very strong start to the year, the US economic growth moderated to 2.5 percent in the second quarter.

“The Federal Reserve did not raise interest rates further in August, noting that slower economic growth is likely to ease inflationary pressures,” OPEC said.

It added that “the world economy is forecast to grow by 4.2 percent next year, compared to 4.8 percent in 2006.”