Oil Falls on Crude-Demand Cut Forecast

Oil prices fell nearly $1 Tuesday to less than $94 a barrel after the International Energy Agency said high prices would cut global demand through next year.

Light, sweet crude for December delivery was down 92 cents, or 0.97 percent, to $93.70 a barrel in mid-morning trading on the New York Mercantile Exchange.

The IEA 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 gained 7 cents, or 0.87 percent, to $8.03 per 1,000 cubic feet.

Heating oil shed 1.58 cents, or 0.61 percent, at $2.5663 a gallon.

Reformulated-gasoline blendstock for oxygen blending slipped 1.95 cents, or 0.81 percent, to $2.397 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.