LONDON: Brent crude oil slipped towards $105 per barrel on Thursday after US crude oil stocks hit their highest level in more than two decades and analysts cut forecasts for global oil demand growth.
Disappointing economic growth in the United States and several developing economies as well as deep recession in parts of Europe have eroded demand for fuel at a time when oil output has been increasing quickly, particularly in North America.
Surplus oil is filling inventories worldwide and US stocks are now higher than at any point since 1990, data show.
The West's energy watchdog on Thursday cut its forecast for global oil demand growth this year by 25,000 barrels per day (bpd), becoming the third of the big energy forecasters to paint a more bearish picture of market fundamentals.
"A slightly weaker demand trend is forecast," the International Energy Agency (IEA), which advises industrialised countries on energy policy, said in its monthly report.
The US government's Energy Information Administration (EIA) and the Organization of the Petroleum Exporting Countries this week both also lowered forecasts for demand growth.
"Everyone is readjusting their portfolio for weaker demand and we're also seeing significant revision of demand forecasts," said Jonathan Barratt, chief executive of commodity research firm BarrattBulletin.
"Prices will fundamentally remain under pressure," he said.
Brent futures slipped 20 cents to $105.59 per barrel by 0820 GMT. They dropped to a low of $103.40 on Monday, the weakest since July.
US crude futures fell 25 cents to 94.39 per barrel, ending three straight sessions of gains.
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