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Last Updated: Thursday, 15 November 2007, 23:32 GMT
Oil falls on lower Opec forecast
A fuel storage tank in the US
Opec argues that supplies are adequate
Oil prices fell on Thursday after oil producer group Opec said demand for oil would be less than expected in the fourth quarter of 2007.

US light, sweet crude fell 66 cents to $93.43 a barrel, after Opec said demand would rise by 1.97% in the quarter, rather than 2.1% predicted in October.

A surprise rise in US crude stockpiles also eased concerns of a supply shortfall in the winter months.

Opec has rejected US calls for an increase in oil output.

The group argues that recent rises have stemmed from speculation, but that current supplies are adequate.

In London, Brent crude dropped 42 cents to $90.94 a barrel.

But the falls come amid volatile trading conditions - US sweet, crude oil fell by $3 a barrel on Monday only to add $3 a day later.

The US government on Thursday reported that domestic stockpiles of crude had jumped by 2.8 million barrels to 314.7 million in the week ended November 9.

'No shortage'

At this time, frankly we don't see that we need to add more oil in the market
Abdallah al-Badri, Opec secretary-general

A record high of $98.62 a barrel - unadjusted for inflation - was reached earlier this month on the back of a weak dollar, market speculation and concerns about tight supplies.

Prices eased slightly after the International Energy Agency lowered its global demand forecast for crude but concerns remain about future supplies and how responsive Opec will be to calls for increasing quotas.

Opec's secretary-general Abdallah al-Badri said on Wednesday that the global market was well supplied with oil.

"At this time, frankly we don't see that we need to add more oil in the market," he said ahead of an Opec summit this weekend to discuss long-term oil supplies.

"There is no shortage of oil."

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