By Grant Smith
Oct. 15 (Bloomberg) — The Organization of Petroleum Exporting Countries, supplier of more than 40 percent of the world’s oil, lowered its 2009 demand forecast for a second month as the worst financial crisis since the 1930s threatens to send the global economy into a recession.
OPEC will hold an extraordinary meeting on Nov. 18 in Vienna, after its decision to trim excess supplies at last month’s gathering failed to check a slump in prices, which have tumbled 49 percent from their July record. The group told members on Sept. 10 to strictly comply with production quotas, implying a cut of about 500,000 barrels a day.
“Dramatically worsening conditions in financial markets indicate strong fallout on the real economy is now inevitable,” OPEC said today in its monthly oil market report. “Ongoing financial market turmoil is expected to continue to impact oil demand well into the coming year.”
The 13-member group reduced its forecast for average oil consumption next year by 450,000 barrels a day, or 0.5 percent, to 87.21 million barrels a day, according to the report. OPEC, based in Vienna, also cut its forecast for demand this year by 330,000 barrels a day.
Last week, the International Energy Agency, an adviser to 28 nations, lowered its projection for global oil demand next year by 0.5 percent to 87.2 million barrels a day.
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