Oil prices fell $1 a barrel this evening as traders awaited OPEC's meeting this weekend. US crude fell $1.05 to $45.98 a barrel, while London Brent crude fell 83 cents to $44.26.
Oil prices have fallen $100 since record highs over $147 a barrel in July 2008 as the economic meltdown dented global energy demand. OPEC meets on Sunday in Vienna to discuss moves to deal with falling oil prices.
The producer group has already cut supplies by 4.2 million barrels per day since September and will decide whether to cut further or agree to stricter compliance with already-announced cuts.
Independent observers estimate that OPEC is currently adhering to about 80% of agreed cuts. Oil has hovered between $33 and $50 since the beginning of the year after OPEC implemented and began showing compliance to output cuts.
Earlier, OPEC released a report showing world oil demand contracting faster than expected, pressuring prices further. OPEC said global demand would fall by 1.01 million bpd on 2009, revising its earlier forecast of a fall by 580,000 bpd.
But the International Energy Agency said strict adherence to OPEC cuts already in place would be enough to shrink oil stocks in developed nations, even though demand is expected to contract further.
