Iran says oil demand lower than expected

TEHRAN, Oct. 9 (UPI) -- Top Iranian oil officials said the looming world financial crisis is creating a larger strain on the energy market than anticipated.

The Iranian governor to the Organization of Petroleum Exporting Countries, Mohammad Ali Khatibi, said the volatility in the world financial markets in the wake of the credit crunch translates to a drop in demand, the Fars News Agency reported.

"We are worried about demand," he said. "The financial crisis is deeper than we expected, and this is definitely influencing world oil demand."

Despite the ripple effect of the subprime mortgage crisis in the United States, markets in Asia continued to fuel the energy sector.

"These financial problems seem to be spreading, but Asia remains the engine of oil demand growth and we haven't yet seen any indication that demand has been influenced," the governor said.

Khatibi said it was premature for OPEC to consider further cuts in production following a reduction in September, but the cartel may reconsider its growth forecast for 2009.

Other OPEC officials said Wednesday the members may consider a November meeting to assess the energy sector in the midst of the global financial crisis.