Investing.com – Crude oil futures extended losses on Thursday, dropping to a four day low after the International Energy Agency cut its forecast for 2011 global oil demand for the first time this year.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in June traded at USD96.14 a barrel during U.S. morning trade, plunging 2.9%.
It earlier fell by as much as 3.7% to USD95.28 a barrel, the lowest price since May 6.
In its monthly report released earlier Thursday, the IEA trimmed its forecast for 2011 global oil demand growth by 190,000 barrels to 89.2 million barrels per day, citing persistent high prices and weaker projections for advanced economies.
The IEA also said that USD4-a-gallon gasoline was likely to result in an “anemic” U.S. driving season. “This is the main change to our demand forecast - a weaker 2011 profile in North America.”
David Fyfe, head of the IEA's oil industry and markets division said, “We clearly have seen demand growth slowing compared to last year's level and we're seeing it very much concentrated where the price feed through is most direct, notably in North America in terms of gasoline.”
Official data released Wednesday showed that total U.S. crude oil inventories rose to the highest level since May 2009 last week, while total fuel consumption declined 0.9% to 18.2 million barrels a day, the lowest level since June 2009.
Also weighing on oil prices was news that China raised reserve requirements for lenders for the fifth time in 2011 in an effort to curb inflation, despite initial signs of a slowdown in the economy.
China is the world’s second largest crude oil consumer, with the International Energy Agency forecasting that China will account for approximately 40% of global oil demand growth in 2012.
Elsewhere, on the ICE Futures Exchange, Brent oil for June delivery tumbled 2.2% to trade at USD110.20 a barrel, up USD14.06 on its U.S. counterpart.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in June traded at USD96.14 a barrel during U.S. morning trade, plunging 2.9%.
It earlier fell by as much as 3.7% to USD95.28 a barrel, the lowest price since May 6.
In its monthly report released earlier Thursday, the IEA trimmed its forecast for 2011 global oil demand growth by 190,000 barrels to 89.2 million barrels per day, citing persistent high prices and weaker projections for advanced economies.
The IEA also said that USD4-a-gallon gasoline was likely to result in an “anemic” U.S. driving season. “This is the main change to our demand forecast - a weaker 2011 profile in North America.”
David Fyfe, head of the IEA's oil industry and markets division said, “We clearly have seen demand growth slowing compared to last year's level and we're seeing it very much concentrated where the price feed through is most direct, notably in North America in terms of gasoline.”
Official data released Wednesday showed that total U.S. crude oil inventories rose to the highest level since May 2009 last week, while total fuel consumption declined 0.9% to 18.2 million barrels a day, the lowest level since June 2009.
Also weighing on oil prices was news that China raised reserve requirements for lenders for the fifth time in 2011 in an effort to curb inflation, despite initial signs of a slowdown in the economy.
China is the world’s second largest crude oil consumer, with the International Energy Agency forecasting that China will account for approximately 40% of global oil demand growth in 2012.
Elsewhere, on the ICE Futures Exchange, Brent oil for June delivery tumbled 2.2% to trade at USD110.20 a barrel, up USD14.06 on its U.S. counterpart.