Oil settles near 84 dollars on oversupply concerns

NEW YORK, April 13 - Oil prices fell for a fifth day on Tuesday as oversupply concerns weighed on market ahead of weekly inventory report. Light, sweet crude for May delivery fell 29 cents to settle at 84.05 U.S. dollars a barrel on the New York Mercantile Exchange. Crude futures dropped to as low as 82.51 dollars a barrel during trading. The International Energy Agency (IEA) said in its latest monthly report, which was released on Tuesday, that crude prices above 80 U.S. dollars a barrel could hurt the economic recovery. IEA said it expects world oil demand will increase by 1.7 million barrels per day this year, compared with a decline of 1.3 million barrels per day last year. However, IEA also predicted that U.S. crude stocks will continue to rise and oil supply from non-OPEC countries will grow faster than previously expected, as big producers cash in on higher oil prices this year. Traders are focused on the government's weekly fuel inventory reports, which are scheduled on Wednesday. Analysts expect the crude stocks to rise for the 11th consecutive weeks by 1.6 million barrels. In London, Brent crude for May delivery fell 9 cents to 84.68 dollars a barrel on the ICE Futures Exchange.