Oil prices fell this evening after the International Energy Agency's sharp reduction of its 2009 world oil demand forecast.
The IEA revised its estimate for 2009 demand downward by 940,000 barrels per day (bpd) to 85.3 million bpd - a fall of about 500,000 bpd from 2008 - as the economic slowdown erodes consumption.
US crude fell 73 cents to $34.67 a barrel, while London Brent crude fell 40 cents to $47.28 a barrel. Brent is much higher due to growing US stockpiles of oil.
In its report, the IEA said Chinese oil demand would grow at its slowest rate in eight years in 2009.
The Organisation of Petroleum Exporting Countries, which already has cut 4.2 million bpd in supply from the world market since September, could quickly deepen output cuts, if needed, OPEC President Botelho de Vasconcelos has said.
The global financial crisis has forced many economies into recession, reducing energy consumption and dragging down oil prices by more than $110 since a record peak in July.
