OPEC predicts world demand for energy will keep falling

Oil fell to its lowest price in three months Friday, briefly touching the $111 level after the dollar muscled higher and OPEC predicted the world’s thirst for fuel next year will fall to its lowest point since 2002.

As high energy costs force countries around the globe to cut back on consumption, crude prices have plummeted and are now within striking distance of $100 a barrel, a level first reached Feb. 19.

Analysts noted that the conflict in Georgia, while likely not driven primarily by energy concerns, highlights Moscow’s influence over oil and natural gas reserves in the region. Russia exports more oil than any country except Saudi Arabia, and is the world’s leading producer of natural gas.

Only weeks ago, such a clash would likely have sent oil prices soaring. But the market has largely ignored the fighting in Georgia because traders have already priced in the geopolitical risk, analysts say. Crude’s monthlong nosedive has also made it harder for bullish traders to spark a rally, despite a possible threat to oil installations.

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