BY ALICE BAGHDJIAN, OCTOBER 12 2012, 12:30 | 0 COMMENT(S)
LONDON — Oil fell below $115 a barrel on Friday, as a prediction of a further decline in oil consumption and higher supplies offset concern about potential output disruptions in the Middle East.
The International Energy Agency (IEA) said ample supply from North America and Iraq, coupled with declining global demand, could lead to an easing of oil prices over the next five years.
Brent crude was off $1.18 at $114.53 a barrel at 9.24am GMT. US crude was down 26c at $91.81.
The IEA cut its global oil demand growth projection for 2011-16 by 500,000 barrels a day compared with its previous report, easing the pressure on the Organisation of Petroleum Exporting Countries (Opec) to produce more oil.
It also cut its 2013 global oil demand projection by 100,000 barrels a day to 90.48-million barrels a day, citing lower consumption in Europe, the Americas and China.
“It seems like the market has reacted on the negative side. Crude oil prices reversed from yesterday’s (Thursday’s) gains amid concern over confirmation of the global oil demand growth,” said Myrto Sokou, a senior research analyst at Sucden Financial.