The Organization of Petroleum Exporting Countries cut global demand forecasts for 2011 and 2012, and signaled that further cuts are possible due to the downbeat global growth outlook.
OPEC also reduced the global demand forecast for this year by 180,000 barrels a day due to the high level of uncertainty regarding the global growth and the weakening Chinese and Indian demand.
The group is also concerned about a possible imbalance in the supply-demand balance in oil market.
OPEC also said that oil demand will rise by 900,000 barrels per day this year, yet this quantity is only a small fraction of the expected annual output of 87.7 million barrels. Furthermore, demand in 2012 was revised lower by 70,000 barrels a day to become 1.2 million barrels.
OPEC also predicts demand for the group's crude to remain unchanged in 2011, but forecasts for 2012 was revised lower by 100,000 barrels a day, where the total consumption is expected at 29.9 million barrels a day.