OPEC sees declining demand

VIENNA, Nov. 18 (UPI) -- The global demand forecast for oil for 2009 was cut nearly in half as the global economic meltdown spills over to estimated consumption, OPEC said in Vienna.

The Organization of Petroleum Exporting Countries said in its latest report that world oil demand for 2009 was expected to rise by 490,000 barrels per day, which is significantly lower than the previous 760,000 bpd estimation, the Platts news service said.

"The global economy is slowing down faster than expected, which is being reflected in downward revisions of forecasts for economic growth for the rest of 2008 and for 2009," the oil cartel said.

OPEC said the major world economies were facing an economic recession as the toxic debt crisis in American markets percolates to international finance sectors. Germany and the European Union said their economies had dipped into recession last week, and Japan followed suit earlier this week.

"It is almost certain that the major (Organization for Economic Cooperation and Development) countries are now in a synchronized recessionary phase, and the rest of the world is being affected to a greater degree than previously anticipated."

The Vienna-based oil cartel said most of the growth in demand for 2009 will come from China and the Middle East.