Brent Crude fell below 108 bbl Wednesday, declining for a 3rd day running after the International Energy Agency cut its demand outlook for the Q-4 and Y 2013 on a rebound in Crude Oil exports from Iran.
The adviser to industrialised nations on energy policy said Opec-member Iran’s exports rose by 33% to 1.3-M BPD in October from the earlier 2 months. That added additional pressure on prices already weak as the US and Europe struggle with their financial woes.
Brent Crude declined 12 cents to 108.14 bbl Wednesday, after ending 81 cents lower. US Crude Oil gained 4 cents to 85.42, reversing from 2 days of losses.
Iranian oil output rose by about 70,000 BPD to 2.7-M BPD in October, and exports recovered as China and South Korea bought more Crude Oil from the Islamic Republic, the IEA said.
On the demand front, the agency cut estimates for global Crude Oil demand for Q-4 by about 300,000 BPD from last month’s report in the wake of Superstorm Sandy. Global demand is now forecast to grow by 670,000 BPD this year and by 830,000 BPD in Y 2013 to 90.4-M BPD, 100,000 BPDlower than last month.
