Oil drops to $82, lowest in a year

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LONDON, Oct 10 (Reuters):- Oil fell more than $4 a barrel to a one-year low on Friday, depressed by expectations global demand growth will shrink if the credit crisis pushes the world economy into recession.
Economic weakness spurred the International Energy Agency to cut its forecasts for world oil demand growth for 2008 to its lowest rate since 1993.
US light crude for November delivery was $4.19 down at $82.40 a barrel by 5:15 am EDT. It touched a session low of $82, its lowest since October 2007.
Prices have dropped more than 40 percent from a peak of $147.27 in July.
London Brent crude was down $4.11 a barrel at $78.55, 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.
But the IEA's latest monthly Oil Market Report warned against too much focus on demand and said the credit crisis was also impacting supply, which at some stage could support oil prices.
The Organization of the Petroleum Exporting Countries has called an emergency meeting in Vienna on November 18 to discuss the impact of the global financial crisis on the oil market.
"OPEC appears to be scrambling to put in another, firmer floor at $80," said Jonathan Kornafel, Asia director of US based options trader Hudson Capital Energy.
"The market may still overshoot on the downside regardless of what OPEC does, as financial flows continue to pour out of commodities," he added.