Brent crude hits one year low on weak demand

Wednesday 13 August 2014 12.53
Oil prices fall as IEA cuts demand expectations
Oil prices fall as IEA cuts demand expectations

Brent North Sea crude oil dropped to a one-year low point today as weak demand expectations help offset potential supply disruptions caused by the Ukraine crisis and Iraq unrest. 

Brent, the European benchmark, dropped at one point to $102.37 a barrel - the lowest level since July last year. 

The contract for delivery in September later pulled back to stand at $102.90 a barrel in London, down 12 cents from yesterday's close. 

US benchmark West Texas Intermediate for September slipped 13 cents to $97.24 a barrel. 

Cutting its demand outlook for this year and next, the International Energy Agency yesterday said that "the oil market today looks better supplied than expected". 

Oil prices have been supported by a risk premium in recent months on armed insurgencies in crude producer Iraq as well as Ukraine, a key conduit for Russian energy exports to Europe.