The Organization of the Petroleum Exporting Countries (OPEC) announced a significant reduction in the demand forecast for its crude through 2015 to its lowest in 12 years.
This forecast by OPEC came in light of the risks of high oil shale production in the United States, which is a major reason to influence OPEC, as well as a decline in global consumption rates due to the drop in demand versus supply.
OPEC decided to cut demand forecasts for 2015 by about 300,000 barrels a day to 28.9 million barrels a day. Moreover, OPEC installed its production during its meeting on the 27 th of November at 30 million barrels a day.
The OPEC report showed the demand for crude could fall to 28.92 million barrel a day next year, which would be the lowest since 2003 and could prompt OPEC in the coming stage o adjust prices amid the surrounding negative indicators.
Brent crude on Wednesday retreated 1.95% after OPEC’s forecast to $62.58 a barrel at 12:02 GMT.