Crude oil futures fell, approaching $35 a barrel in New York, on forecasts faltering global economic growth will drive down fuel consumption for a second year.| Goldman Sachs Group, while forecasting a recovery in prices later this year, said demand will decline by 1.6 million barrels a day. That's more than three times the drop forecast by the International Energy Agency last week. |
The Organisation of Petroleum Exporting Countries (Opec) may have to cut output again should prices fall further, Algerian Oil Minister Chakib Khelil said over the weekend.
"The world recession is continuing to dampen demand," said Christopher Bellew, a senior broker at Bache Commodities Ltd. in London. "Cuts by Opec members will probably stabilise the market, but it may take some time before they translate into any upward price move."