NEW YORK (AFP) — World crude oil prices slid again on Friday as the OPEC crude producers' cartel lowered its forecast for oil demand growth, citing the weak global economy.
New York's main oil futures contract, light sweet crude for September delivery, closed down 1.24 dollars at 113.77 dollars a barrel.
In London, Brent North Sea crude for October delivery dropped 1.13 dollars to settle at 112.55 dollars a barrel. The September contract had expired at 112.64 dollars on Thursday.
"The softening economic situation has led to a further slowdown in oil demand growth," the Organization of the Petroleum Exporting Countries said in its latest monthly forecast on Friday.
OPEC, which produces about 40 percent of the world's oil, revised its global oil demand growth forecast for 2008 down to 1.17 percent from 1.20 percent in July.
The cartel also kept its 2009 forecast for oil demand growth unchanged at 1.03 percent, according OPEC's latest report.
"Due to a major slowdown in transport and industrial fuel consumption not only in North America but also in ... Europe and Pacific (industrialized nations), oil demand growth will be on the decline in 2009 which will make the world oil demand growth the lowest since 2002," the monthly report added.
OPEC predicted that world oil demand would rise to 86.90 million barrels per day in 2008 -- up from its July estimate of 86.81 million bpd -- and to 87.80 million bpd in 2009.
Prices also fell in line with the strengthening US currency, which reduces demand for dollar-priced goods because they become more expensive for buyers wielding weaker currencies.
Crude futures sank Thursday after official data showed that the 15-nation eurozone economy shrank 0.2 percent in the second quarter, the first contraction since the creation of the single European currency in 1999.
Prices had been supported earlier in the week after the US Department of Energy reported Wednesday that US gasoline reserves had fallen by 6.4 million barrels in the week ended August 8. That was worse than forecasts of a drop of just 2.0 million barrels.
Gasoline stocks are closely watched at this time of year as American motorists hit the highways for their summer vacations, typically pushing up demand for gasoline, which is refined from crude oil.
Dealers said that fears of supply disruption had receded after Russia and Georgia agreed to a French-brokered peace plan following several days of hostilities.
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