Citigroup Forecasts Drop in Oil Demand

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A new Citygroup report forecasts demand for oil could fall in the next decade.  

"Several developments . . . raise the possibility that the tipping point for oil demand may come much sooner than the markets are expecting," Seth Kleinman, head of energy strategy at Citigroup, said Tuesday.

One reason oil demand could fall is because the United States is going to start producing more natural gas and that will take the place of oil for many businesses.

Klein also said cars and trucks are getting more fuel efficient so they won't need as much fuel.

"As cars make up roughly 60 percent of the total global road fleet we conservatively estimate that new vehicles (cars and trucks combined) fuel economy increases by 2.5 percent per automobile," he said.

He suggested both of those factors will cut down on the demand for oil and that could lead to lower price

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