Oil tumbles on crude demand-cut forecast

New York -- U.S. oil prices fell nearly 4 percent Tuesday to nearly $91 a barrel after a forecast said high prices would cut global demand through next year.

Light, sweet crude for December delivery was down $3.45, or 3.65 percent, to close at $91.17 a barrel on the New York Mercantile Exchange, the lowest closing price since Oct. 30.

Brent crude on the ICE futures exchange fell $3.13 to $88.85 a barrel.

The Paris-based International Energy Agency said demand through 2008 would be 87.69 million barrels a day, 300,000 barrels less than it previously estimated. Consumption through the end of this year will be 500,000 barrels a day less than it earlier projected.

Oil reached a record $98.62 a barrel last Wednesday.

December natural gas Tuesday lost 1 cent, or 0.15 percent, to $7.95 per 1,000 cubic feet.

Heating oil shed 8 cents, or 3.1 percent, at $2.5021 a gallon.

Reformulated-gasoline blendstock for oxygen blending tumbled 9.98 cents, or 4.13 percent, to $2.3167 a gallon.

AAA said the average U.S. retail regular unleaded gasoline price was $3.105 a gallon, up 0.4 cents from Monday's $3.101 a gallon.

© 2007 United Press International.