OPEC cuts oil demand forecast

OPEC has revised down its forecast for world oil demand this year, saying economic 'uncertainties' will keep the market under pressure. The Organization of Petroleum Exporting Countries (OPEC) lowered its estimate for the 2009 global demand by 430,000 barrels per day (bpd) to 84.18 million bpd. Demand will contract by 1.37 million bpd, or 1.6 percent, in 2009, in its latest monthly report on Wednesday. "In the coming months, the market is expected to remain under pressure from uncertainties in the economic outlook, demand deterioration and the substantial overhang in supply," OPEC said in its latest monthly report on Wednesday. This is the eighth successive month that OPEC has brought down its forecast for global oil demand as the economic downturn continues to slash demand growth. The group forecast a decline of 1.1 million bpd, or 1.2 percent, last month. "World oil demand is already out of its high demand seasonality achieving nothing but devastating contraction," the report said. Oil has dropped by almost $100 since hitting a record high of $147.27 a barrel in July as the global financial crisis sharply slashed demand. On Wednesday, US crude for May delivery was up 8 cents at $49.49 a barrel, off a session high of $50.79. Brent crude was down 32 cents at $51.64 a barrel. OPEC decided in a March summit not to cut its current production level at least until May 28, when the group meets in Vienna to re-evaluate the market. The 12-member body said it would instead push its members to 'comply fully' with earlier agreements to reduce oil output. OPEC agreed to cut production by 4.2 million bpd starting from September last year.