The Organisation of the Petroleum Exporting Countries (Opec) today lowered its forecast for demand for its oil next year.
Demand for Opec crude, known as the call on Opec, in 2007 will average 28.1 million barrels per day, 200,000 bpd less than forecast in August, the 11-nation producer group said in its September monthly report.
The outlook follows Opec's decision this week to keep its oil output near a 25-year high despite a roughly $15 drop in prices since mid-July. But the group left the door open to a supply cut before the end of the year.
In its communique after the group's oil ministers met in Vienna on Monday, Opec said non-Opec supply in 2007 would rise at the fastest rate in more than two decades. Opec pumps more than a third of the world's oil.
"The rebound in non-Opec supply in 2007 is predicted to be at its highest level since 1984 - and market fundamentals indicate a clear imbalance between supply and demand," Opec said.
Average demand for Opec's oil next year will be 800,000 bpd less than the 28.9 million bpd expected in 2006, the report said.
Although Opec expects supply from outside producers to rise by 1.8 million bpd next year, analysts said that the chance it may underperform could increase the burden on Opec.