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Thu 16 Oct 2008 06:35 AM

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Oil price falls to new 13-month low

Deepening global slowdown, weakening demand sees 2009 price forecasts cut to $74 a barrel.

Oil fell for a third day to a new 13-month low near $73 a barrel on Thursday, amid continued worries that a deepening economic slowdown will cut into already weakening demand.

Traders are also waiting for weekly US oil inventory data due later on Thursday. Analysts polled by Reuters expect the numbers to show increases in crude and oil products.

Crude for November delivery was trading down $1.17 at $73.37 a barrel early on Thursday in electronic trading, after settling down $4.09 a day earlier. It earlier fell to $73.18, the lowest since late August 2007.

Crude now stands more than 50 percent off the July record peak above $147, and analysts have scaled back global demand growth estimates, after a slew of recent data backed a trend of weakening oil demand.

London Brent crude was not traded yet, after settling down $3.73 at $70.80 on Wednesday.

US retail gasoline demand last week fell more than 9 percent year-on-year for a second straight week as consumer spending slowed, MasterCard Advisors said.

JP Morgan cut its average oil price forecast for 2009 to $74.75 a barrel, citing the weak economic outlook. (Reuters)

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