Oil Prices Back Below $50

New York, NY, April 13, 2009--Oil prices fell below $50 a barrel Monday after the International Energy Agency said it expects global crude demand to drop this year amid the worst worldwide recession in decades.

Benchmark crude for May delivery dropped $2.97 to $49.27 a barrel on the New York Mercantile Exchange after last settling on Thursday at $52.24. Trading was closed on Friday for the Good Friday holiday.

The Paris-based IEA, an energy policy adviser comprising 28 countries, said on Friday that demand this year will likely fall by 2.4 million barrels a day to 83.4 million barrels, or 2.8 percent lower than last year.

Oil prices have rallied from below $35 a barrel in February, mirroring a jump in stock markets, as investors anticipate massive global stimulus packages may spark a recovery in the second half.