CORRECTED - NYMEX-Crude down on demand worry, equities, dollar

(In paragraph 9, corrects date and price of when front-month crude was last lower to May 19 instead of May 18)

* IEA: Global oil demand to bounce back in 2010

* Wall Street extends losses weighed by energy

* Dollar, yen rise as investors turn cautious

* U.S. May trade gap narrows to lowest since 1999

NEW YORK, July 9 (Reuters) - U.S. crude oil futures were down sharply on Friday as a worrisome demand forecast from the International Energy Agency, weakening equities and a stronger dollar combined to pressure oil prices.

Global oil demand will rebound 1.7 percent next year, but the demand outlook for this year was "effectively unchanged," -- down 2.9 percent, or 2.5 million bpd compared with last year, the Paris-based International Energy Agency, adviser to 28 industrialized nations, said in its latest monthly forecast. [IEA/M]

Wall Street extended declines on fears that an economic recovery and corporate profits will be anemic after oil major Chevron (CVX.N) warned about second-quarter results and as oil futures tumbled. [.N]

The dollar and yen rose against other major currencies on investor caution as the U.S. corporate earnings season began and shares prices fell.

"Petroleum prices continue to slip lower, with any possibility of a week-ending bounce cut short by a declining equity market, a firmer U.S. dollar and an International Energy Agency report that seemed mixed at best," said Tim Evans, analyst at Citi Futures Perspective in New York.

David Fyfe, head of the IEA's oil industry and market division, said the extent of recovery in world oil demand would rest on the performance of the global economy and prices.

On Thursday, NYMEX crude futures ended higher, snapping a six-day losing streak, amid bargain hunting, a drop in jobless benefit claims and a rally in gasoline futures.

But analysts agreed that brimming product supplies and weak demand continued to weigh on the market.

PRICES

* On the New York Mercantile Exchange at 11:45 a.m. EDT (1545 GMT), August crude CLQ9 was down $1.32, or 2.19 percent, at $59.09 a barrel, trading from $60.89 to $58.72, the lowest since May 19's intraday low of $58.55, to $60.89.

* The June 30 peak of $73.38 was the highest intraday front-month crude oil price since crude hit $75.69 on Oct. 21.