LONDON — Brent crude oil sank to an eight-month low under $103 a barrel on Friday as the outlook for global oil demand growth dimmed, although an improvement in US jobs data put a floor under prices.
The International Energy Agency (IEA) on Thursday trimmed its 2013 global oil demand growth estimate, following similar moves by the US Energy Information Administration (EIA) and the Organisation of the Petroleum Exporting Countries (Opec).
Brent crude lost $1.23 to trade at $103.02 a barrel by 9.16am GMT, after reaching as low as $102.92. US oil shed $1.02 to $92.49.
"There will be little scope for the oil price to recover for as long as demand prospects remain gloomy," Commerzbank oil analyst Carsten Fritsch said.
Oil drew some support from data showing a drop in the number of Americans filing for new unemployment benefits last week, which helped ease fear of a deterioration in labour market conditions after a surprise stumble in job growth in March.
Softer demand outlook
World oil use will rise by 795,000 barrels a day this year, the Paris-based IEA said in its monthly report. That is 25,000 barrels a day less than it estimated last month and a third straight monthly cut.
The IEA now has virtually the same view on demand as Opec, which in a report on Wednesday lowered its consumption growth forecast to 800,000 barrels a day. The EIA on Tuesday lowered its estimate by 50,000 barrels a day to 960,000 barrels a day.
On supply, the IEA also lowered its forecast for countries outside Opec this year for the first time in several months and said worsening security in Libya and oil theft in Nigeria had contributed to a decline in Opec output last month.
Markets were also watching developments in north Asia after a US government agency said North Korea had a nuclear weapon it could mount on a missile, adding an ominous dimension to threats of war by Pyongyang, but the assessment was swiftly dismissed by several US officials and South Korea.
