Oil extends losses below $105 after IEA forecast

BANGKOK (AP) — The price of oil fell slightly Friday, extending losses below $105 a barrel after a report from the International Energy Agency said supplies would exceed an expected rise in demand next year.

Benchmark crude for August delivery was down 19 cents at $104.72 a barrel at early afternoon Bangkok time in electronic trading on the New York Mercantile Exchange. The contract fell $1.61 to close at $104.91 on Thursday.

Oil had shot higher in recent days on a dramatic drop in U.S. supplies of oil and gasoline but its rise to a 16-month high was halted by the IEA’s forecast Thursday.

The agency expects supply growth to result in an additional 1.3 million barrels of oil a day in 2014, while global demand is forecast to grow by 1.2 million barrels a day next year.

“Non-OPEC supply growth looks on track to hit a 20-year record next year,” the IEA said in its monthly oil market report. “While demand growth is also forecast to pick up momentum … this will still fall short of forecast non-OPEC supply growth.”

Brent crude was down 10 cents at $106.94 on the ICE Futures exchange in London.

In other energy futures trading on Nymex:

— Wholesale gasoline rose 2.2 cents to $2.993 a gallon.

— Natural gas was down 0.2 cent at $3.611 per 1,000 cubic feet.

— Heating oil was little changed at $2.996 a gallon.

blog comments powered by Disqus