Brent crude eased towards $108 a barrel last Friday as downbeat U.S. eco¬nomic data outweighed supply disruptions in Lib-ya and Angola.
An unexpected drop in U.S. retail sales in Janu¬ary and a spike in weekly jobless claims have raised doubts over growth in the world’s biggest economy and undermined expecta¬tions of higher global oil demand growth this year.
Brent crude was down 20 cents at $108.32 a bar¬rel at 1250 GMT. U.S. crude traded 33 cents lower at $100.02.
“Prices have pulled back this morning as the weaker demand outlook in the United States and softening producer prices in China leave investors struggling with direction,” said Kash Kamal, a re¬search analyst at Sucden.
Oil forecasters, howev¬er, remain optimistic about global oil demand growth.
The International En¬ergy Agency (IEA) is the most upbeat – projecting growth of 1.3 million bar¬rels per day (bpd), while the Energy Information Administration and OPEC peg growth at 1.26 million bpd and 1.09 million bpd, respectively.
The IEA says stronger-than-expected demand has drained oil inventories to the lowest level since 2008, tightening the mar¬ket and defying predic¬tions of a glut.
Oil prices were support¬ed by a drop in Libya’s oil output to 460,000 barrels a day on Thursday after pro¬tests shut pipelines from the El Wafa and El Sharara oilfields.
Adding to supply con¬cerns, BP on Thursday declared force majeure on exports of Plutonio crude from Angola after output had been cut back due to damage to a hose.
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