Oil prices slipped by nearly 1% after the International Energy Agency (IEA) reduced oil demand forecast, countering the Organization of the Petroleum Exporting Countries’ (OPEC) claim of a tightening market.

Brent crude futures LCOc1 dropped 88¢ to $61.33 per barrel, while the US West Texas Intermediate (WTI) crude CLc1 fell 70¢ to $55 a barrel, reported Reuters.

IEA decreased its oil demand growth forecast by 100,000 barrels per day (bpd) to around 1.5 million barrels per day this year and 1.3 million barrels per day next year.

“Brent crude futures LCOc1 dropped 88¢ to $61.33 per barrel, while the US West Texas Intermediate (WTI) crude CLc1 fell 70¢ to $55 a barrel.”

It also stated that the supplies are estimated to exceed demand by 600,000 barrels per day and 200,000 barrels per day respectively in the first and second quarters of next year.

In addition, the agency noted that output from non-OPEC members will rise by 1.4 million barrels per day next year.

The IEA report contradicted OPEC’s latest assessment, which posited a stronger oil demand during the same year.

OPEC and several non-OPEC countries have restricted their oil production rates in order to tighten the market as part of an arrangement that will remain effective until March next year.

All participating nations are scheduled to meet on 30 November to discuss the possible extension of the deal.

Oil prices were also under pressure following a weekly report released by the American Petroleum Institute (API) that highlighted an increase in the US crude inventories by 6.5 million barrels in the week ending 10 November to a total of 461.8 million.