Oil prices fell below $85 per barrel Tuesday after OPEC cut its estimate for world oil demand for this year and said it expects no growth in demand for 2012. Benchmark crude fell 71 cents to $84.70 per barrel in morningtrading in New York.
Oil prices rose sharply on Monday along with the stock market as fears of a recession faded. But OPEC said Tuesday that the weakening world economy was taking its toll on oil demand, especially in developed nations.
The Organization of Petroleum Exporting Countries said demand will be about 180,000 barrels per day less than forecast for 2011 and 100,000 barrels per day less than forecast for 2012.