Oil Drops as IEA Lowers Global Demand Expectations for 2012 and 2013

Bloomberg reported that the price of oil dropped after the International Energy Agency reduced its outlook for global oil demand by 100,000 barrels per day for 2012 and 2013. The organization anticipates that world oil demand will be 89.7 million barrels per day this year and 90.5 million barrels next year.

As quoted in the market news:

Crude for November delivery settled at $91.86 a barrel on the New York Mercantile Exchange. Prices gained 2.2 percent this week, in the first advance in four weeks. Futures are down 7.1 percent this year.

Brent for November settlement fell $1.09, or 0.9 percent, to end the session at $114.62 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude’s premium to New York futures narrowed to $22.76 a barrel, down from yesterday’s $23.64, the biggest gap since October 2011.

Click here to read the full Bloomberg report.