Oil drops below $114 on slowing economies

Oil prices skidded further Friday, falling below $114 on signs that the world’s largest economies are weakening and on OPEC’s prediction that energy demand will decline.

The dollar, which is rising in response to concerns about the global economy, also sent oil lower.
An OPEC forecast of lower demand also put downward pressure on prices.

In its monthly oil report, the organization forecast world appetite for oil this year overall will fall by 30,000 barrels a day. While forecasting demand growing by a daily 1 million barrels a day this year, and another 900,000 barrels in 2009, the report noted that world demand growth next year will also be “the lowest since 2002,” with demand growth from the major industrialized countries actually declining.

AP