May 16, 2006	Tuesday	Rabi-us-Sani 17, 1427

LONDON, May 15: World oil prices fell sharply on Monday as expectations of slower demand growth for energy eased supply concerns related to Iran, dealers said. New York’s main contract, light sweet crude for delivery in June, shed $2.49 to $69.55 per barrel in pit trading. The compared with its record high of $75.35, achieved on April 21.

In London on Monday, Brent North Sea crude for June delivery fell $2.02 to $70.02 per barrel in electronic deals.

“Oil futures were down... adding to Friday’s losses as concerns remain that high oil prices are denting global demand,” said analysts at the Sucden brokerage firm in London.

On Friday, the International Energy Agency’s (IEA) had cut its oil demand growth forecast for 2006.

The IEA, which monitors energy conditions for the world’s leading industrialised states and oversees supply arrangements in times of crisis, added also that an increase in Iraqi exports had helped boost worldwide production in April.

Citing mild temperatures in the first quarter and the impact of high prices on consumption, the IEA put average daily demand this year at 84.8 million barrels, an increase of 1.5 percent from 2005 but less than a previous forecast of 85.1 million barrels for this year.—AFP