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Demand For OPEC's Oil Is Tumbling

Tomas Hirst,Tomas HirstDec 10, 2014, 17:27 IST

The Organization of Petroleum Exporting Countries (OPEC) lowered its projection for oil demand in 2015 to 28.9 million a day - its lowest level since 2002, according to Bloomberg.

The cut of around 300,000 barrels a day in expected demand comes after crude oil prices have collapsed by 40% since June.

"The downward revision reflects the upward adjustment of non-OPEC supply as well as the downward revision in global demand," OPEC said in its monthly market report.

The combination of slowing growth, particularly in energy-intensive countries like China, and the shale oil boom in the US has put significant pressure on oil prices over recent months. Brent crude has fallen from a peak of $115 a barrel in June to under $66 today, while US benchmark WTI crude is down from over $107 a barrel to $62.7.

EIABrent vs WTI crude prices in 2014.

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