Oil prices fell on Tuesday as the International Energy Agency (IEA) warned about the potential risks to the economic recovery brought about high energy costs. New York's main futures contract, light sweet crude for May delivery fell 29 cents to 84.05 dollars per barrel. Brent North Sea crude oil for delivery may also slumped 29 cents to 84.48 dollars per barrel.

The IEA on Tuesday revised the projected rise in world oil demand in 2010 is 30,000 barrels per day due to unforeseen economic activity is strong in the U.S., Asia and the Middle East. However, the IEA also warned in its latest monthly report that oil prices above 80 dollars per barrel could hinder economic recovery.

"While the ongoing price subsidies can protect non-OECD consumers from the reality of any potential new price hikes, this, plus the tight credit from two years ago, could hamper the economic recovery of the OECD or create more short-OECD oil than our current shadow this, "said IEA.

"In the end, things could turn messy for the manufacturer if the 80-100 dollars per barrel is only seen as just 60-80 dollars per barrel, while stunting the economic recovery triggered the resurgence of investment in the supply of non-oil and non-OPEC."

Oil prices surged above 80 dollars last week after traded in the range of 70-80 dollars, a level deemed satisfactory by the Organization of Petroleum Exporting Countries (OPEC) and the consumer.

"Crude oil prices tend to get some support following the bullish tone of the IEA monthly report which shows that the average world crude oil demand will reach record high of 86.6 million barrels per day (MBD) in 2010," said Sucden analyst Financial Research , Myrto Sokou.

The IEA on Tuesday also raised its estimate for oil supply from countries such as Canada and Russia, which does not include OPEC - the member countries that together pump about 40 percent of world crude oil.

Non-OPEC production was revised up 220,000 barrels per day to 52.0 million barrels per day for 2010 "reaffirmed the more optimistic view of the supply in the middle of the high price levels." IEA offers advice on energy policy to the Organization for Economic Cooperation and Development (OECD), a group of 30 developed countries of the world. Wednesday the U.S. Energy Information Agency (14/4/2010) will publish its weekly report on oil inventories, a key indicator for the oil market.