Crude oil fell more than four percent on Monday after the International Energy Agency (IEA) lowered its forecast for global oil demand.
Light, sweet crude for May delivery fell 2.19 U.S. dollars to settle at 50.05 dollars a barrel on the New York Mercantile Exchange (NYMEX). Futures dropped to as low as 48.84 dollars a barrel during trading.
Oil prices have been closely following the performance of the stock market and NYMEX crude futures ended six percent higher last Thursday before the Easter holiday. But with Wall Street losing steam on the first trading day after the long weekend, oil market investors turned to focus on the latest energy demand report by the IEA.
The Paris-based IEA said on Friday that the world oil demand would fall by 2.4 million barrels to 83.4 million per day this year compared with 2008. The report pointed out that fuel consumption has reached the lowest levels since early 1980s.
Investors are also expecting the short-term energy outlook from U.S. Energy Department and monthly view from OPEC, both of which are to be released later this week, Xinhua reported.
In London, Brent crude for May delivery fell 1.92 dollars to 52. 14 dollars a barrel on the ICE Futures Exchange.