CHENNAI: Brent futures edged further below $106 per barrel on Thursday as key forecasters trimmed their outlook for global oil demand growth, while an inventory buildup in top consumer the United States also hurt prices.
The Organization of Petroleum Exporting Countries lowered its projection for growth in 2013 oil demand on Wednesday, after a similar downward revision by the US Energy Information Administration earlier this week, reviving concerns the global economic recovery may be shakier than investors earlier thought.
The third closely watched oil forecaster, the International Energy Agency, updates its outlook on Thursday.
"Everyone is readjusting their portfolio for weaker demand and we're also seeing significant revision of demand forecasts," said Jonathan Barratt, chief executive of BarrattBulletin, a Sydney-based commodity research firm.
"It seems logical to suggest that the support (in recent sessions) is the result of the stimulus, but prices will fundamentally remain under pressure," he said, referring to Japan's ambitious monetary easing policy announced last week that has helped oil prices come off eight-month lows.
Brent futures fell 17 cents to $105.62 per barrel by 0426 GMT. They hit $103.40 on Monday, the weakest since July on disappointing US jobs data.
US crude futures fell 27 cents to 94.37 per barrel, after three straight sessions of gains.
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