The Organization of Petroleum Exporting Countries (OPEC) lowed its forecast for global oil demand this year to 88.76 million barrels per day (bpd) from the previous forecast of 88.90 million bpd, the cartel said on Thursday.

Economic setback around the globe was a reason for the downward revisions of crude oil demand, the organization said in a market report. However, the new forecast is still 1 percent higher than the demand in 2011.

In 2012, slight demand reduction in the Organization for Economic Cooperation and Development (OECD) countries will be offset by the increase in the Middle East, Latin America and Asia, mainly in China and India.

Economic growth prospects in the United States, the development of the European debt crisis and higher oil prices could have impact on the global demand for crude oil, the report said.

OPEC is the world's largest oil cartel, which accounts for about 30 percent of global crude oil output.