NEW YORK: Oil prices fell on Thursday, after the International Energy Agency (IEA) trimmed its forecast for energy demand growth, this year, the third of the world's top forecasters to do so at a time of growing oil supplies.
The IEA cut its 2013 global oil demand growth forecast for the third straight month. The US Energy Information Administration (EIA) and the Organization of the Petroleum Exporting Countries (OPEC) also revised their forecasts lower this week.
Sputtering economic growth in the United States and several developing economies and a recession in parts of Europe have eroded demand for fuel at a time when oil production has been increasing rapidly, particularly in North America.
"The IEA not only lowered their demand outlook, but they also speculated about the potential for a crude oil bear market this year. The agency's negative sentiment is weighing on prices," said John Kilduff, partner at Again Capital LLC in New York.
US crude oil inventories rose last week and now stand at their highest level since 1990, according to the EIA's weekly report on Wednesday.
Gasoline stocks independently held in Europe's Amsterdam-Rotterdam-Antwerp hub climbed to their highest level in almost five years last week, data from analyst Patrick Kulsen showed on Thursday.
Brent prices declined more sharply than US crude prices, narrowing the spread between Brent and US West Texas Intermediate to a nine-month low of $10.60 at one point on Thursday. It was trading at $10.80 at 1:09 p.m. EDT (1709 GMT).
Brent May crude fell $1.58 to $104.21 a barrel, after touching a session low of $104.05. Brent's May contract expires on Monday.
US May crude was down $1.14 cents at $93.51 a barrel, well below its 50-day moving average of $94.33. It dropped as low as $93.15 during the session.
US RBOB gasoline continued to sag, falling more than 3.5 cents. The benchmark distillate futures contract also fell more than 4.5 cents.
Oil prices slipped even as world stock markets rose for a fourth day, receiving a lift from an unexpected drop in US initial jobless claims last week.
A weaker dollar, usually supportive for dollar-denominated commodities, did not prevent the price weakness in the oil futures complex.
<Center><b><i>Copyright Reuters, 2013</b></i><br></center>
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