Declining oil consumption in China during H1-2005 and expectations of slower economic growth in other Asian countries, has made OPEC revise its demand estimate downwards. OPEC's report says that world demand would expand by 1.62 million barrels to 83.66 million bpd - 150,000 bpd less than its previous estimate. OPEC expects its emergency supply cushion to grow in 2006 due to lowered 2005 global demand forecast. This has triggered a fall in oil prices.
Light, sweet crude for August delivery fell to settle at US$57.32 a barrel on the New York Mercantile Exchange, and on London's International Petroleum Exchange, Brent futures for September delivery fell to settle at US $56.99 a barrel.
The U.S. federal Minerals Management Service has reported that less than 1% of the region's oil and natural gas production had been shut-in as a result of rig and platform evacuations. OPEC's latest monthly report overshadowed waning concerns about hurricane Emily's potential destruction to oil installations in the Gulf of Mexico. As Iraqi oil workers from key southern oil fields went on strike on Sunday, demanding better pay and warning more labour action, production was not immediately affected.
19-Jul-05 
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