Oil falls; demand forecast to ease

VIENNA -- Oil prices fell yesterday as traders took profits after prices jumped above $61 a barrel Thursday.

The oil market was also digesting a monthly report from the International Energy Agency, which yesterday trimmed its outlook for 2006 global oil demand growth to 1.1 percent from 1.2 percent. Demand growth for 2007 held at 1.7 percent.

The agency also forecast a 2.6 percent jump in fourth-quarter global energy demand, citing high consumption in the United States. The agency noted US consumption was being compared with figures from when Hurricane Katrina and mild weather curbed demand a year ago.

The agency said that demand for oil from the Organization of Petroleum Exporting Countries was expected to rise 1.6 million barrels a day, due to lower output from non-OPEC countries.

The outlook points to tighter market conditions and higher prices just as OPEC oil production cuts disclosed in late October are going into effect.

Light sweet crude for December delivery on the New York Mercantile Exchange slipped $1.57 to settle at $59.59 a barrel, after jumping $1.33 a day earlier. Brent crude on the ICE Futures exchange dropped $1.61 to settle at $59.71.

Heating oil futures dropped 4.90 cents to settle at $1.6966 a gallon on the Nymex and unleaded gasoline futures fell 3.83 cents to settle at $1.5627 a gallon.