Oil declines on IEA report

Crude oil fell in New York after the International Energy Agency said 2009 demand may slump to the lowest in five years as factories shut and car sales tumble amid a deepening global recession.

Oil consumption will fall 2.4 million barrels a day this year, about the same amount that Iraq produces, to 83.4 million barrels a day, the IEA said on April 10 as trading in New York and London was closed for the Good Friday holiday. US crude supplies are at their highest since July 1993, the Energy Department said on April 8.

"Data such as the IEA's downgrade of expected demand show the commodities rally we've seen recently may have short legs," said Ronald Smith, chief strategist at Alfa Bank in Moscow.