Oil Demand Is Going to Drop: Expert

"What we have seen from China and Korea today in terms of rate cuts means it is inevitable that oil demand will go down, so there is no question that the amount of oil we expect to be consuming for the remainder of this year and 2013 is not going to grow by any substantial amount," Uwe Parpat, managing director and head of research at Reorient Financial Markets, told CNBC.