From the Department of basic-marketing-techniques:
Oil prices dropped in morning trade in New York, after oil producer group Opec lowered its demand forecast for the fourth quarter of 2007.To summarise:
US light, sweet crude fell 72 cents to $93.37 a barrel, after Opec said demand would rise by 1.97% in the quarter, rather than 2.1% predicted in October.
The group has rejected US calls for an increase in oil output.
Opec argues that recent rises have stemmed from speculation, but that current supplies are adequate.
In London, Brent crude dropped 2 cents to $91.34 a barrel.
But the falls come amid volatile trading conditions - US sweet, crude oil fell by $3 a barrel on Monday only to add $3 a day later.
A record high of $98.62 a barrel - unadjusted for inflation - was reached earlier this month on the back of a weak dollar, market speculation and concerns about tight supplies.
Prices eased slightly after the International Energy Agency lowered its global demand forecast for crude but concerns remain about future supplies and how responsive Opec will be to calls for increasing quotas.
Opec's secretary-general Abdallah al-Badri said on Wednesday that the global market was well supplied with oil.
"At this time, frankly we don't see that we need to add more oil in the market," he said ahead of an Opec summit this weekend to discuss long-term oil supplies.
"There is no shortage of oil."
Opec: We reckon people won't need much oil for the next three months.
Market: Sell! Sell! Sell! Tell us more o wonderful Opec.
Opec: There is no shortage of oil.
Market: Well that's a relief. Sell! Sell! Sell!