Modest 2006 Oil Demand Growth to Pressure Saudi to Cut

OPEC’s biggest producer Saudi Arabia will be under pressure to cut output next year as modest oil demand growth, rising OPEC capacity and non-OPEC supply will push oil prices lower, a leading London-based oil consultancy said Monday.

In its monthly oil market report, the Centre for Global Energy Studies forecast 2006 oil demand to grow at only 1.3% or 1.1 million barrels a day as Chinese demand falls from the record levels seen in 2004 and high prices take their toll.

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