* US crude stocks rise to highest since Sept 1990 -EIA
* OPEC cuts demand forecasts in lastest monthly report
(Adds U.S. data, analyst comment, updates prices)
By Jane Merriman
LONDON, April 15 (Reuters) - Oil fell below $50 on
Wednesday, after U.S. crude oil stocks rose last week to their
highest level in nearly two decades.
By 1502 GMT, U.S. crude for May delivery <CLc1> was down 42
cents at $48.99 a barrel, off a session high of $50.79.
ICE Brent crude <LCOc1> was 54 cents lower at $51.42.
Weekly fuel supply data from the world's top energy consumer
showed a 5.6 million barrel rise in crude stocks last week. This
was a much bigger jump than analysts had predicted. Those polled
by Reuters had expected a rise of 1.9 million barrels. []
Crude stocks in the United States last week reached 366.7
million barrels, according to the government data, the highest
total since the week ended Sept. 21 in 1990.
"Another week, another bearish inventory report," said Tom
Bentz, senior commodity analyst at BNP Paribas Commodity Futures
Inc. "It's been negative week after week and yet the market
hasn't collapsed."
"It's defying fundamental logic, focusing instead on the
dollar, the strength in the stock market and inflation fears --
that's what's keeping the oil price up."
The global recession has hit oil demand which has been
contracting at a rate not seen since the early 1980s.
The oil price has tumbled too, down almost $100 a barrel from
a record of more than $147 in July last year.
TRACKING EQUITIES
Prices have hovered in a $47-$54-range for the past four
weeks, having moved up from a recent low of $32.40 in December.
OPEC has cut output by 4.2 million barrels per day since
last September to try to prop up prices.
And a rally in equity markets this month on hopes the world
economic outlook might be brightening has helped boost oil
prices, despite its weak supply/demand fundmamentals.
"We still expect the U.S. stock market to be the
intermediate price driver for most commodity complexes over the
next few weeks," Edward Meir of MF Global said in a research
note.
Earlier the Organization of the Petroleum Exporting
Countries had added to the market's gloomy fundamentals with a
prediction that world oil demand would fall by 1.37 million
barrels per day in 2009.
This was more than OPEC's 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. []'
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. []
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 Keiron Henderson)
