Crude oil fell after the International Energy Agency said that global demand will decline for a second year, the first back-to-back contraction since 1983. The IEA, which advises 28 developed nations on energy policy, cut its 2009 forecast by 1 million barrels a day on expectations the economic outlook will deteriorate. Forecasters including OPEC, the U.S. Energy Department’s Energy Information Administration, JPMorgan Chase & Co. and Deutsche Bank AG have already said demand will fall this year. “The IEA made a significant revision from last month,” said Nauman Barakat, senior vice president of global energy futures at Macquarie Futures USA Inc. in New York. “The market reaction to the report was certainly mitigated by the fact that OPEC, the EIA and others have already said that demand was going to drop this year.” Crude oil for February delivery fell 10 cents, or 0.3 percent, to $35.30 a barrel at 10:45 a.m. on the New York Mercantile Exchange. Prices are down 60 percent from a year ago. Brent crude oil for March settlement declined 12 cents, or 0.3 percent, to $47.56 a barrel on London’s ICE Futures Europe exchange.

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