OPEC Lowers 2009 Oil Demand Forecast

In the latest Monthly oil report from OPEC, a dreary picture was painted for the US economy. Their assessment is that economy is in the gutter, with the September unemployment rate unchanged but likely to resume its worsening trend, the ISM index down with new orders from factories falling almost 10 points month over month, and an up tick in pending home sales likely to be the product of "vulture investors at this stage".

Yup, it's not a pretty picture from OPEC's perch.

The rippling effect of this sagging state of affairs is likely to create a lower than anticipated worldwide demand for oil. Right now that is a good thing for consumers. Oil has been in a free-fall from record highs of almost $150 per barrel, settling at a 13-month low of under $71 today.

This of course means that it's only a matter of time before key players in the OPEC cartel start shouting that it's time to close the spigots because prices are too low.