OPEC pulls back on demand expectations

The Organization of Petroleum Exporting Countries meeting in London Tuesday cut their forecast for global economic growth to 3.7 percent for 2011. OPEC said economic growth would reach 4 percent in 2012. Pointing out the stumbling economic recovery would impact oil demand, the world's largest oil cartel in a monthly report said demand would grow in 2011, but pushed their previous demand forecast down by 150,000 barrels per day. "Economic worries have affected OPEC oil demand," the report said. OPEC said its previous forecast for Japan was unchanged at 2.5 percent, while growth expectations in the eurozone was cut from 1.5 percent to 1.4 percent. "Developing Asian countries continue to be the main drivers of growth," the report said. China's growth forecast was unchanged at 9 percent for 2011 and 8.5 percent for 2012. In India, the projection declined from a call for 8.1 percent growth to 7.9 percent for 2011. The United States was given the largest shift with OPEC calling for 1.8 percent growth compared to 2.5 percent in a previous report.