Oil prices eased Friday after the Organization of Petroleum Exporting Countries cut its global consumption outlook, even as it said the worst may be over for the recession-hit world economy.

In its Monthly Oil Market Report, OPEC said global demand, which had dropped substantially in the wake of the global economic crisis, "appears to be settling" as the economy regains strength.

The cartel said world oil demand for 2009 is forecast to fall by 1.6 million barrels per day year-over-year to average 83.8 million barrels a day. The previous 2009 forecast was for 84.03 million barrels.

"Industrial production activities are steadying and in some parts of the world have even improved slightly," the cartel said in its June report. "This should stop the bleeding in oil demand.

"There are no significant downward revisions to our previous oil demand forecasts. Still, U.S. oil demand is the wild card and any further downward adjustment in the country’s oil demand would have an impact on total world oil demand," OPEC said.

The cartel has reduced its production quotas by 4.2 million barrels since September as it moved to control supply amid slumping demand.

Oil settled down 64 cents at $72.04 US a barrel on the New York Mercantile Exchange.

On Thursday, oil pushed to a new eight-month high above $73, however that is still about 50 per cent below the peak it hit last July. Prices dipped to below $35 a barrel in December.