Reduced demand to keep oil, gas prices lower, rating agency says
  by: OilOnline
  Monday, November 19, 2001

Waning global and industrial demand are likely to drive the prices of oil and gas lower where they will remain for the near to intermediate term, according to Fitch, the international rating agency. The agency has lowered its price deck, or forecast for oil and gas to $19.50 and $2.15, respectively for 2002. Global demand will wane and fundamentals of supply and demand will force oil lower, while high inventory levels coupled with decreasing industrial demand will factor into lower gas prices, says Fitch Senior Director Sean Sexton. Inventories for natural gas are currently at the top of the six-year range for 1994-1999, Sexton says. Other factors contributing to lower crude oil price forecasts is increasing non-OPEC production, declining OPEC cohesion and Saudi Arabia's reluctance to relinquish its OPEC market share.