Oil mixed after IEA cuts demand forecast
August 14, 2014, 12:01 am TWN
SINGAPORE--Oil prices were mixed in Asia Wednesday after the International Energy Agency slashed its demand outlook for 2014 and 2015 while reporting a glut in global supplies despite conflicts in Iraq and Ukraine.
U.S. benchmark West Texas Intermediate for September rose four cents to US$97.41 in afternoon Asian trade, after declining 71 cents in New York.
Brent crude for September delivery was down 31 cents at US$102.71. It fell US$1.66 to finish at US$103.02 in London on Tuesday, its lowest closing point since July 1, 2013.
Cutting its demand outlook for this year and next, the IEA on Wednesday said "the oil market today looks better supplied than expected."
The agency, the oil policy arm of the Organisation for Economic Cooperation and Development, projected 2014 oil demand would rise by 1.0 million barrels a day to 92.7 mbd, compared to its July forecast for growth of 1.2 mbd.
It cut its 2015 demand forecast to 94 million barrels a day — 300,000 barrels less than the previous prediction.
Oil prices have seen a build in risk premium in recent months due to armed insurgencies in crude producer Iraq as well as Ukraine, a key conduit for Russian energy exports to Europe.
Spooner said investors will next be scrutinizing the latest U.S. stockpiles report to be released later Wednesday for clues about demand in the world's top crude consumer.