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| Version 2 | Version 3 |
|---|---|
| Oil falls as demand set to slow | Oil falls as demand set to slow |
| (about 1 hour later) | |
| The price of oil has fallen sharply after the International Energy Agency predicted that the global recession would cut demand for crude this year. | The price of oil has fallen sharply after the International Energy Agency predicted that the global recession would cut demand for crude this year. |
| The IEA said on Friday that world oil demand would fall by 2.4 million barrels a day to 83.4 million barrels. | The IEA said on Friday that world oil demand would fall by 2.4 million barrels a day to 83.4 million barrels. |
| US light crude fell by $3.26 to $48.98 a barrel. London Brent oil was down by $3.02 at $51.04. | |
| Since hitting a record high of more than $147 a barrel in July last year, oil prices have slumped. | Since hitting a record high of more than $147 a barrel in July last year, oil prices have slumped. |
| 'Demand destruction' | 'Demand destruction' |
| The Paris-based IEA said its forecast of lower oil demand was influenced by "a growing consensus that economic and oil demand recovery will be deferred to 2010". | The Paris-based IEA said its forecast of lower oil demand was influenced by "a growing consensus that economic and oil demand recovery will be deferred to 2010". |
| It also noted that developed countries' oil inventories had risen in February to 61.6 days of forward cover, the highest since 1993. | It also noted that developed countries' oil inventories had risen in February to 61.6 days of forward cover, the highest since 1993. |
| Victor Shum, an analyst in Singapore with the Pervin & Gertz consultancy, said the IEA's lower forecast represented "very serious demand destruction". | Victor Shum, an analyst in Singapore with the Pervin & Gertz consultancy, said the IEA's lower forecast represented "very serious demand destruction". |
| "The macroeconomics don't look good at all for this year," he added. | "The macroeconomics don't look good at all for this year," he added. |
| The price of oil dropped below $40 a barrel at the end of 2008 before recovering slightly, but remains nearly $100 below peak levels. | The price of oil dropped below $40 a barrel at the end of 2008 before recovering slightly, but remains nearly $100 below peak levels. |