International Energy Agency on Thursday said global demand in oil consumption will fall 3% in line with the OPEC agreements rising prices due to sentiment rather than supply and fundamentals demands.
Its oil fell$58 barrels per day after the Agency cuts its forecast to 2.56 million barrels per day in 2009, to average 83.2 million barrel per day from its previous forecast of 2.6 million barrels per day or 83.4 million a barrel in a year earlier.
“Oil futures have moved higher in tandem with stronger global financial markets, the IEA said Yet, new bullish macroeconomic sentiment has not yet produced signs of oil demand recovery and oil market fundamentals remain weak.
Recently, oil prices rose six month high above $60 per barrel a day on Tuesday after it fell $35 a barrel in December last year from $140 a barrel in July last year
It also expects United states of America economic growth to fall 2.8% in 2009 as the oil price rose $59 barrels per day, according to OPEC reports Wednesday as retail sales drop and job employment increases.
US crude oil fell $0.23 to 0.4% at $57.79 and London crude oil drop $0.25 to 0.43% at %57.87 in the regular trading.