Friday, the International Energy Agency lowered global oil demand forecast by 1 million barrels per day to 83.4 million barrels a day after a reassessment of GDP assumptions and lower-than-expected demand in the first quarter.

In its monthly Oil Market Report, the agency said The pace of contraction is close to early 1980s levels, with a growing consensus that economic and oil demand recovery will be deferred to 2010.

Further, the IEA said lower global crude runs are expected to persist through the second and third quarters of 2009.

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