Oil demand to fall sharply in 2015: OPEC

Global oil cartel OPEC said demand for oil in 2015 is expected to fall to the lowest level in more than a decade and far below current output.

In a monthly report, the Organization of the Petroleum Exporting Countries, said forecast demand for the group's oil will drop to 28.92 million barrels per day (bpd) in 2015, down 280,000 bpd from its previous expectation and over 1 million bpd less than it is currently producing, pointing to a hefty supply surplus without OPEC output cuts or a slowdown in the US shale boom.

The report follows OPEC's decision last month not to try and prop up prices by cutting output. Top exporter Saudi Arabia urged fellow members to combat the growth in US shale oil, which needs relatively high prices to be economic and has been eroding OPEC's market share.

The report cut its forecast for growth in global demand in 2015 due to a weaker outlook for Europe and Asia, and predicted higher supply growth from shale and other non-OPEC sources, although it said this may be slowed if prices stay weak.

Next year's average demand for OPEC crude is expected to be the lowest since 28.15 million bpd in 2004, using the December reports published on OPEC's web site each year as a comparison.