NEW YORK, Dec. 10 (UPI) -- Crude oil futures suffered another blow Wednesday as OPEC in its monthly market report for December trimmed its forecast for global oil demand for 2015.
The Organization of Petroleum Exporting Countries said in its monthly market report for December it expected world oil demand to increase next year by 1.12 million barrels per day. That represents a 70,000 bpd decline from the previous month's estimate.
Total demand for 2014 also declined from the November estimate by 12,000 bpd.
Oil markets responded to the report by shedding value, one day after posting a modest recovery.
Brent, the global oil price index, dropped close to $1.50 per barrel to trade at $65.36 for the January contract in early Wednesday trading. OPEC in its market report blamed the recent drop on a series of economic and market data.
"During the last two days of [November] prices fell sharply as the market reacted to the OPEC decision to maintain the 30 million barrel per day crude output ceiling," it said. "Additionally, the European Commission saw subdued growth in 2014 and 2015, while Japanese growth stalled."
In the long term, however, OPEC said it saw signs of recovery emerging largely from the United States, while the "headwinds" are moving in favor of the European economy.
Prices for West Texas Intermediate, the U.S. benchmark, declined more than $1.70 early Wednesday to grab $62.11 for the January contract. WTI prices are reaching the point at which drillers working in U.S. shale basins will struggle to make a profit.
Adam Sieminski, director of the U.S. Energy Information Administration, said Tuesday drillers may be struggling already, though 2015 production should still be at its highest level in more than 40 years.
"Continued lower oil prices will make some drilling activity less profitable in both emerging and mature U.S. oil production areas," he said in a statement. "However, oil prices are expected to remain high enough in 2015 to support new drilling in the major shale areas in North Dakota and Texas, which account for most of the growth in U.S. oil production."
