OPEC Cuts 2006 World Oil Demand Growth to 1.7%

The Organization of Petroleum Exporting Countries Wednesday trimmed its forecast for 2006 world oil demand growth to 1.7% or 1.4 million barrels a day as high oil prices have started to bite in countries where fuel subsidies have been slashed.

In its monthly oil market report, OPEC said the slight downward revision was also due to warmer weather in the U.S. and high gasoline prices which curbed demand in the first quarter of this year. However demand in the U.S. is expected to rebound later in the year and demand in China is still expected to remain strong this year.

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