OPEC reels in world use estimate on less U.S. demand

Cartel also drops supply forecast for non-OPEC countries

SAN FRANCISCO (MarketWatch) — Oil cartel OPEC on Friday lowered its estimate for global demand as record-high crude and gas prices in the United States continue to slow consumption.

In its latest monthly oil market report, the Organization of the Petroleum Exporting Countries dropped its estimate for 2008 global oil demand to an increase of 1.1 million barrels a day, which would total global oil consumption of 86.88 million barrels a day.

The cartel’s previous report estimated that 2008 demand would be 86.95 million barrels a day, an increase of 1.17 million barrels.

OPEC now sees North American demand falling by 70,000 barrels to 25.46 million barrels a day, one of two regions whose volume forecast was cut by OPEC.

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