* Oil falls to lowest in a year
* IEA cuts 2008, 2009 world demand growth forecasts
* OPEC to hold emergency meeting on Nov. 18
(Recasts, adds IEA report, comment, updates prices, previous
SINGAPORE)
LONDON, Oct 10 (Reuters) - Oil fell more than $4 a barrel to
a one-year low on Friday, depressed by expectations global
demand growth will shrink if the credit crisis pushes the world
economy into recession.
Economic weakness spurred the International Energy Agency to
cut its forecasts for world oil demand growth for 2008 to its
lowest rate since 1993. []
U.S. light crude for November delivery <CLc1> was $4.19 down
at $82.40 a barrel by 0915 GMT. It touched a session low of $82,
its lowest since October 2007.
Prices have dropped more than 40 percent from a peak of
$147.27 in July.
London Brent crude <LCOc1> was down $4.11 a barrel at
$78.55, below $80 for the first time in a year.
The IEA, which advises 28 industrialised nations, cut its
world demand growth forecast for 2008 to 0.5 percent -- the
lowest in percentage terms since 1993.
But the IEA's latest monthly Oil Market Report warned
against too much focus on demand and said the credit crisis was
also impacting supply, which at some stage could support oil
prices.
MARKETS TUMBLE
The Organization of the Petroleum Exporting Countries has
called an emergency meeting in Vienna on November 18 to discuss
the impact of the global financial crisis on the oil market.
"OPEC appears to be scrambling to put in another, firmer
floor at $80," said Jonathan Kornafel, Asia director of U.S.
based options trader Hudson Capital Energy.
"The market may still overshoot on the downside regardless
of what OPEC does, as financial flows continue to pour out of
commodities," he added.
Commodities have tumbled along with global stock markets,
which suffered heavy losses in Asia. The Nikkei index <>
plunged nearly 10 percent on Friday. [] European
shares were also down sharply. <>
Investors, who earlier this year piled into oil and other
commodities as a hedge against inflation and the weak dollar,
now want safety.
"Commodity indices suffered heavy losses over the past week
as market sentiment continue to focus on the potential
demand-side weakness associated with the ongoing instability in
the financial sector," Barclays Capital said in a note.
But gold, a traditional safe haven, jumped more than 2
percent on Friday to a two-month high of $931 an ounce. <XAU=>
Investors will this weekend look to Washington, where
finance ministers and central bankers from the Group of Seven
nations will meet to look for ways to contain the crisis.
[]
(Reporting by Jane Merriman in London and Annika Breidthardt in
Singapore; editing by James Jukwey)
