LONDON, March 14: World oil prices receded on Tuesday as traders noted strong downward revisions to global crude demand forecasts by the International Energy Agency, dealers said.

The news helped dampen prices that had spiked by more than a dollar on Monday when dealers looked to supply concerns in Iran and Nigeria.

New York’s main contract, light sweet crude for delivery in April, fell 17 cents to $61.60 per barrel in electronic deals before the market’s official opening.

In London, the price of Brent North Sea crude for April delivery dipped 13 cents to $62.07 per barrel in electronic trade.

In Monday’s trading, US crude prices had spiked $1.81 to close at 61.77 dollars per barrel, rebounding from a 6.0-per cent slide the previous week.

The Paris-based IEA predicted Tuesday that global oil demand growth in 2006 would increase by 1.8 per cent, lower than the 2.1-per cent rise forecast in February, in the face of high prices and demand sluggishness in Southeast Asia.

Demand growth should come to 1.49 million barrels per day (bpd) in 2006 instead of 1.78 million, it added in a monthly report.

The IEA noted a recent fall in oil prices from January levels.

A look at fundamentals suggests that while there may be some justification for a moderation in prices, the road ahead is far from smooth, it added.

The agency warned that in the next few months strong world economic growth and rising crude demand, physical supply unpredictability in Iraq and Nigeria and low Pacific product stocks are likely to counterbalance additions to capacity.

Elsewhere, traders kept one eye on Iran, where concerns remain over exports from the world’s fourth-biggest producer of crude.

Iran remains a concern after being reported to the UN Security Council, although the ongoing disagreement has been factored in to an extent, analysts at the Sucden brokerage said.

—AFP