US oil prices fell by almost US$2 to close at US$51.86. As high oil prices start to affect global demand, oil prices are slipping lower, triggered by a warning of slowing oil demand growth. The International Energy Agency released a weak demand forecast, cutting world oil demand forecast for 2005 by 50,000 bpd to 84.3m bpd. Lower demand is anticipated from Russia and the former Soviet states. Chinese demand also slowed to a 5.4% growth rate in the first two months of 2005, compared with the 20.8% growth seen in 2004.
Receding demand, coupled with a possible rise in production from OPEC and higher than previously reported oil stocks, have pulled oil prices down. IPE Brent for May delivery dropped to US$51.98 a barrel at the end of London trade, and Brent June contract slipped to US$53.43 a barrel.
13-Apr-05 
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