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Oil prices fell today on expectations of slackening demand following the cold season in the US and Europe, which is likely to cut heating fuel consumption.

Brent crude dropped by 17 cents to $108.79 a barrel, while US oil was down by 38 cents to $102.02, reported Reuters.

Crude prices are in decline as weather patterns improve in the US and demand for heating fuels drops slowly, while global oil supplies appear to be increasing.

The Energy Information Administration (EIA) said US oil production for 2013 rose by nearly one million barrels per day to reach an output level of 7.46 million barrels per day due to a boom in shale drilling.

Crude was also under pressure on expectations of rising exports from OPEC member Iran.

"Crude was also under pressure on expectations of rising exports from OPEC member Iran."

Iran is preparing for more oil business and some of its vessels are set to move into the high seas after spending more than a year at home ports, in another sign that the easing of sanctions is enabling exports to pick up.

In recent weeks, three Iranian supertankers made their first trips to Asia after months at Iranian anchorages where they were storing unsold oil.


Image: US oil production surged in 2013 to its highest level in 25 years. Photo: courtesy of Victor Habbick.

Energy