Crude prices plunge after EIA lowers global oil demand forecasts

Special Report:Global Financial Crisis

NEW YORK, Feb. 10 (Chinese media) -- Crude prices plunged

Tuesday after the U.S. Energy Information Administration (EIA) lowered global

oil demand forecasts.

The EIA revised down its 2009 global oil demand

forecast by 400,000 barrels per day from the previous outlook, predicting demand

will fall by 1.17 million barrels per day this year from 2008 levels.

The worsening global economy and a weak consumption

means there is plenty of oil on the market despite recent OPEC cuts, said the

EIA.

Meanwhile, the Commerce Department said Tuesday that

wholesalers slashed inventories by the largest amount in 16 years. Inventories

plunged by 1.4 percent, nearly double analysts' expectations of 0.8 percent.

Light, sweet crude for March delivery tumbled 2.01

U.S. dollars to settle at 37.55 dollars a barrel on the New York Mercantile

Exchange.

In London, the March Brent contract fell 19 cents to

45.83 dollars on the ICE Futures exchange.