(Update prices, adds quote, Iran)
LONDON, Jan 16 (Reuters) - Oil slid more than $1 a barrel to
below $91 on Wednesday to the lowest in almost a month,
pressured by further signs that slowing U.S. economic growth
will erode fuel demand.
The International Energy Agency, adviser to industrialised
countries, on Wednesday cut its 2008 global demand growth
forecast by 130,000 barrels per day to 1.98 million bpd and said
it may lower the figure further.
U.S. crude <CLc1> was down $1.14 at $90.76 barrel by 1103
GMT and fell as far as $90.60, the lowest since Dec. 20. London
Brent crude <LCOc1> was down 80 cents to $90.18.
Brent briefly fell below $90 for the first time since
mid-December.
Mike Wittner, global head of oil research at Societe
Generale, said fears over the world economy and relatively
confortable oil supply were likely to keep the downward pressure
on oil prices.
"We have seen some negative studies on the macro economic
front, and the IEA report this morning is moderately bearish.
This was just more than a revision," Wittner said.
"Looking forward, I think prices are going to fall further.
Essentially, the market seems to be balanced in the first
quarter this year."
Oil in New York has slid from an all-time peak of $100.09
hit earlier this month as concern of a U.S. economic slowdown
outweighs tightening stockpiles in major consumer nations.
While lowering its demand forecast, the Paris-based IEA
pointed to a further decline in stocks in member-countries of
the Organisation for Economic Co-operation and Development.
"The oil market has tightened. There's no doubt about that,"
said Lawrence Eagles, head of the IEA's Oil Industry and Markets
division. "In terms of forward cover, we're at the lowest since
November 2003."
Even so, weekly data on U.S. inventories due later on
Wednesday is expected to show crude inventories rose last week
for the first time in nine weeks []. The report is due at
1530 GMT on Wednesday.
U.S. President George W. Bush, ending a Middle East tour,
has urged Saudi Arabia, the world's top oil exporter and the
most influential OPEC member, to help tame soaring crude prices.
OPEC Secretary-General Abdullah al-Badri reiterated on
Wednesday that the group was ready to raise supply if justified
by fundamentals, but that he did not consider world oil
inventories to be low.
But OPEC-member Iran, at odds with the United States, saw no
need to increase oil production after the recent drop in prices,
its oil minister Gholamhossein Nozari was quoted as saying by
the state broadcaster.
(Reporting by Ikuko Kao)
(Additional reporting by Maryelle Demongeot in Singapore,
Alex Lawler in London)
