VIENNA, Aug 15: Opec revised its world oil demand growth forecast for 2008 down to 1.17 per cent from 1.20 per cent, citing the weak global economy, in its monthly report on Friday.

“The softening economic situation has led to a further slowdown in oil demand growth,” it said.

The Organisation of Petroleum Exporting Countries also confirmed its previous 2009 forecast for oil demand growth, keeping it unchanged at 1.03 per cent.

“Due to a major slowdown in transport and industrial fuel consumption not only in North America but also in OECD Europe and Pacific, oil demand growth will be on the decline in 2009 which will make the world oil demand growth the lowest since 2002,” the oil cartel said in its report.

Opec predicted that world oil demand would rise to 86.90 million barrels per day (bdp) in 2008, up from its July estimate of 86.81 million bpd, and to 87.80 million bpd in 2009.

Noting the recent drop in oil prices, the cartel concluded: “The continued softening of oil market fundamentals, which has been seen since the start of the year, have finally begun to be reflected in prices.”

Oil prices drop