LONDON: Brent crude eased towards $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 20 cents at $108.32 a barrel at 1250 GMT. US crude traded 33 cents lower at $100.02.
"Prices have pulled back this morning as the weaker demand outlook in the United States and softening producer prices in China leave investors struggling with direction," said Kash Kamal, a research analyst at Sucden.
Oil forecasters, however, remain optimistic about global oil demand growth. The International Energy Agency (IEA) is the most upbeat - projecting growth of 1.3 million barrels per day (bpd), while the Energy Information Administration and OPEC peg growth at 1.26 million bpd and 1.09 million bpd, respectively.
The IEA says 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 a day on Thursday after protests shut 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 output had been cut back due to damage to a hose.
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