Brent crude slipped slightly today as Asian equity markets lost ground on worries that the recent increase will not continue for long.
The speculations of stable global consumption growth and a sudden plunge in US stockpiles capped any further drop in price.
Brent crude declined by two cents to $109.63 a barrel, while US oil rose by 36 cents to $92.90, reported Reuters.
Asian shares dropped because of a lack of further support to maintain the rise that boosted the Dow Jones Industrial Average to reach another record and mark eight days of gains.
In its monthly report, the Organization of the Petroleum Exporting Countries (OPEC) predicted there will be no change for growth in global oil consumption, and anticipated a rise of 840,000 barrels per day (bpd) in 2013.
OPEC has suggested that demand growth is likely to miss earlier forecasts, as a result of economic weakness and because US supplies will grow to their highest level in three decades.
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The organisation anticipates the US economy will increase by 1.7% in 2013, down from the earlier prerdiction of 1.8%.
The US Energy Information Administration (EIA), in its monthly report, has also reduced its 2013 world oil demand forecast a little and cut the forecast for non-OPEC production.
Oil has received some boost from the American Petroleum Institute’s (API) report – mostly the US benchmark – which showed that US crude inventories dropped by 1.4 million barrels last week.
The API also said that during the same week, gasoline inventories dropped by 3.1 million and distillates fell by 2.2 million barrels.
Investors are eagerly waiting for the weekly stockpile data from the US Energy Information Administration, scheduled to be released on Wednesday, to get a better understanding on inventories.
Image: OPEC anticipates the US economy will grow by 1.7% in 2013. Photo courtesy of freedigitalphotos.net / Suat Eman.