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The Organization of the Petroleum Exporting Countries says demand will drop by 1.37 million barrels per day in 2009, a sharper decline than previously forecast.
LONDON (Reuters) — World oil demand is shrinking faster than previously thought as a slowing global economy erodes consumption, OPEC said on Wednesday.
The Organization of the Petroleum Exporting Countries said in its Monthly Oil Market Report that demand would drop by 1.37 million barrels per day (bpd) in 2009 to average 84.2 million bpd. Its previous forecast was for demand to fall by 1.01 million bpd.
Demand is falling fastest in the developed nations of the Organization for Economic Co-operation and Development (OECD), but the global downturn has also curbed previously rapid demand growth in developing countries like China and India.
Demand growth in countries outside the OECD has fallen by 90% year-on year, OPEC said, and is now expected to increase by just 200,000 bpd in 2009.
“Unlike last year, non-OECD oil demand growth has lost 90% of its strength this year,” OPEC said in its report.