LONDON: Brent crude eased towards US$108 a barrel on Friday as downbeat US economic data outweighed supply disruptions in Libya and Angola.
An unexpected drop in US retail sales in January and a spike in weekly jobless claims have raised doubts over growth in the world's biggest economy and undermined expectations of higher global oil demand growth this year.
Brent crude was down 13 cents at US$108.39 a barrel at 0942 GMT. US crude traded 42 cents lower at US$99.93.
"We see an eventual crude price slide of around US$4-5 per barrel from current levels but we also see that such a development will require a bearish combo of sharply declining global equities and a major strengthening in the US dollar," said Jefferies Bache analysts.
The International Energy Agency (IEA) said on Thursday that Stronger-than-expected demand has drained oil inventories to the lowest level since 2008, tightening the market and defying predictions of a glut.
Oil prices were supported by a drop in Libya's oil output to 460,000 barrels per day on Thursday after protesters shut down pipelines from the El Wafa and El Sharara oilfields.
Adding to supply concerns, BP on Thursday declared force majeure on exports of Plutonio crude from Angola after production had been cut back due to damage to a hose.-- Reuters
