* OPEC cuts demand forecasts in lastest monthly report
* EIA report likely to confirm large jump in US crude stocks
(Adds OPEC monthly report, Nigeria force majeure, updates
prices)
By Jane Merriman
LONDON, April 15 (Reuters) - Oil retreated from session
highs to below $50 a barrel on Wednesday, after OPEC's latest
monthly oil market report predicted a faster-than-expected drop
in world oil demand.
By 1214 GMT, U.S. crude for May delivery <CLc1> was up 8
cents at $49.49 a barrel, off a session high of $50.79.
ICE Brent crude <LCOc1> was 32 cents lower at $51.64.
The Organization of the Petroleum Exporting Countries said
world demand would fall by 1.37 million barrels per day in 2009,
more than its previous forecast for a fall of 1.01 million bpd.
"In the coming months, the market is expected to remain
under pressure from uncertainties in the economic outlook,
demand deterioration and the substantial supply overhang," OPEC
said.
The global recession has hit oil demand which has been
contracting at a rate not seen since the early 1980s.
Both the International Energy Agency and the U.S. government
agency EIA have also just reduced their global demand forecasts.
In its monthly outlook released on Tuesday, the EIA cut its
2009 world oil demand forecast by 180,000 barrels per day to
just over 84 million bpd. []
Oil has fallen almost $100 from a record of more than $147 a
barrel in July last year. Prices have hovered in a $47-$54-range
for the past four weeks, having fallen as low as $32.40 in
December.
OPEC has cut output by 4.2 million barrels per day since
last September to try to prop up prices.
STOCKS STILL RISING
"We suspect in the short-term, direction will be provided by
the EIA inventory numbers out later today," said Edward Meir of
futures broker MF Global.
Industry group American Petroleum Institute (API) said on
Tuesday U.S. domestic crude stocks had risen by 6.5 million
barrels last week, much higher than a 1.9 million-barrel
increase forecast in a Reuters poll. []
The U.S. EIA report, due at 1430 GMT, is likely to show U.S.
crude oil supplies rose for the sixth consecutive week, probably
to the highest in almost 19 years, a Reuters poll of analysts
showed. []
"However, we still expect the US stock market to be the
intermediate price driver for most commodity complexes over the
next few weeks," Meir said in a research note.
A rally in equity markets this month on hopes the world
economic outlook might be brightening has helped boost oil,
despite its weak supply/demand fundmamentals.
European equity markets edged lower on Wednesday following
on from heavy losses in the United States markets on Tuesday.
Royal Dutch Shell's <RDSa.L> Nigerian joint venture has
declared force majeure on Bonny Light crude oil exports in April
and May after a fire caused a production shut-down. []
(Editing by James Jukwey)
