Good news oil is going down in price index but bad news only due to a bad economy.
By Jane Merriman
LONDON (Reuters) - Oil pared losses on Friday after a fall of more than $7 to below $80 a barrel for the first time in a year, pummeled by expectations that fuel demand growth will shrivel if the credit crisis pushes the world into recession.
Economic weakness spurred the International Energy Agency (IEA) to cut its forecasts for world oil demand growth for 2008 to its lowest rate since 1993.
U.S. light crude for November delivery was down $4.68 at $81.91 a barrel by 1427 GMT. It touched a session low of $78.61, its lowest since October 2007.
Prices have dropped nearly 45 percent from a peak of $147.27 in July.
London Brent crude was down $4.59 a barrel at $78.07, also below $80 for the first time in a year.
The IEA, which advises 28 industrialized nations, cut its world demand growth forecast for 2008 to 0.5 percent -- the lowest in percentage terms since 1993.
The agency said the impact of global economic weakness was most acute in developed countries, while developing countries were showing "a degree of resilience."
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