* UAE says oil market "well supplied"
* IEA sees no new OPEC supply cut at May meeting
* IMF to cut global forecast, sees 2010 recovery-paper
(Recasts, updates prices and market activity)
By Rebekah Kebede
NEW YORK, April 20 (Reuters) - Oil slid over 8 percent to
under $46 a barrel on Monday, depressed by a rising U.S. dollar
and growing caution about the pace of any economic recovery and
its impact on oil demand.
U.S. crude for May delivery <CLc1> settled 8.8 percent
lower at $45.88 a barrel, down $4.45. Brent crude <LCOc1> for
June settled 6.5 percent lower at $49.86, down $3.49.
The May U.S. crude contract expires on Tuesday, which
traders also cited as a factor helping to pressure the market.
"Weaker equity markets and a stronger U.S. dollar may be
encouraging the selling, and the expiration of the May crude
futures on Tuesday may be adding a sense of urgency to the
trade, but we also see this as a recognition that the poor U.S.
demand and inventory statistics of the past few weeks do
matter," Tim Evans, analyst at Citi Futures Perspective, said
in a research note.
The International Monetary Fund will cut global economic
forecasts in the coming week, the agency's head, Dominique
Strauss-Kahn, said on Monday, adding that he expected a
recovery to start in the first half of next year.
[]
U.S. stocks slid on Monday as investors worried about the
sustainability of better-than-expected quarterly earnings after
Bank of America reported a big increase in troubled loans.
[]
Shares of both Bank of America <BAC.N> and Citigroup Inc
<C.N>, two of the nation's largest banks, dropped more than 16
percent.
The dollar hit a one-month high against a basket of
currencies on Monday. A rising dollar can limit the appeal of
commodities and oil to some investors. []
Oil has fallen nearly $100 from its record high of over
$147 last July, trading around $50 for most of this month in
part due to supply cuts by the Organization of the Petroleum
Exporting Countries.
The International Energy Agency does not expect OPEC to
curb output again when it meets in May and does not expect oil
demand recovery until 2010, the agency said Monday.
OPEC member United Arab Emirates' oil minister Mohamed
al-Hamli told reporters at a Dubai conference the oil market
was "well supplied." []
"A lot of refineries are not running at full capacity. A
lot of oil is going into storage," he said. "We've seen that
stocks are building up. We've seen them go from 52 days to
close to 59 days."
Some oil analysts see further price weakness through the
Northern Hemisphere summer before the market recovers.
BNP Paribas forecast U.S. light crude oil futures will drop
to average just $35 per barrel in the second quarter of 2009,
down from over $43 in the first quarter, before recovering to
$45 in the third quarter and $58 in the fourth.
(Additional reporting by Robert Gibbons in New York,
Christopher Johnson and Alex Lawler in London and Fayen Wong in
Perth; Editing by Christian Wiessner)
