Brent Slips Below $103 On Weak Global Economy

Brent crude oil slipped below $103 on Thursday after weak demand forecasts and rising stockpiles put pressure on prices. The commodity traded at $102.99 at 8:53 GMT on Thursday morning amid concern that summer driving season in the US wasn't driving up demand as it has in the past.

US gasoline stocks jumped despite the driving season being underway. According to CNBC, the US Energy Information Administration released data that showed gasoline stockpiles on the East Coast rose 2.9 million barrels last week; their highest level since February 2012. The data also showed crude oil stocks increasing despite earlier forecasts of little change.

The report came after both the Organization of Petroleum Exporting Countries and the EIA released trimmed global oil demand growth forecasts on Tuesday. Investors have been worrying about the state of the global economy as over the past few months it has weighed on Brent prices and dragged down demand. The International Energy Agency added to these worries by releasing a statement which indicated that slow economic growth was keeping a lid on worldwide oil demand. The agency said it saw some developed countries showing declines in oil consumption in 2013.

Brent did find some support from a weaker dollar, which fell near a 4 month low on Thursday. The weaker dollar has cushioned Brent prices despite the lack of demand. Many analysts expect to see low demand and uncertainty over the dollar keep the commodity between $100 and $105 over the next few days.

Geopolitical tension in Syria and Libya also lent support to Brent prices as tension in both regions threatened to disrupt supply. In Libya protests have cut oil exports to less than 1 million barrels per day. The conflict has shut down two export terminals and a major oilfield.

In Syria, the ongoing civil war has threatened to expand into a regional conflict as Western officials discussed sending new aid to rebels fighting President Bashar al-Assad on Saturday.

BY Laura Brodbeck