OPEC expects slower demand

The Organization of Oil Exporting Countries has predicted that rising prices at the pump will soon start to slow the growth of demand for gasoline. It predicted that demand in 2005 would increase by 1.7 percent to 83.5 million barrels per day. That was lower than its earlier forecast of a demand increase of 1.9 percent.

Saudi Crown Prince Sultan was quoted as saying that the crude oil supply is not the problem, but that price increases are due to an increased demand for products refined from crude oil and the shortage of capacity to refine those products. OPEC’s president has said that he will propose that his organization should increase it crude oil output by 500,000 barrels per day when the oil cartel meets next week.

In London Brent Crude October contracts on the International Petroleum Exchange dropped 21 cents on the day Thursday to close at $63.16 per barrel even though it reached near $64 per barrel early in the day.

West Texas Intermediate crude for October delivery fell 34 cents to $64.75 per barrel. November Nymex unleaded gasoline and heating oil were both down on the day as well. Unleaded gasoline dropped 4 cents to $1.87 per gallon, while heating oil lost 1 cent to $1.95 per gallon.