Oil price hits nine-month low in London

August 12, 2014 - 2:50:30 pm

LONDON: Oil prices dropped on Tuesday, with European benchmark Brent falling to a fresh nine-month low point on easing concerns about supply disruptions arising out of conflicts in Ukraine and Iraq.

Brent crude for delivery in September hit $103.65 a barrel -- the lowest level since last November. In later midday deals, Brent stood at $103.78 a barrel, down 90 cents compared with Monday's closing level.

US benchmark West Texas Intermediate for September dropped 71 cents to $97.37 a barrel.

Meanwhile unsteady global economic growth is holding down oil demand and prices despite conflict in key producer regions, the International Energy Agency said on Tuesday.

"Despite armed conflict in Libya, Iraq and Ukraine, the oil market today looks better supplied than expected, with an oil glut even reported in the Atlantic basin," the International Energy Agency said as it lowered its forecasts for crude demand this year and next.

Desmond Chua, market analyst at CMC Markets in Singapore, said markets were buoyed by the "uncanny coincidences of de-escalating crises in the trifecta hotspots," referring to east Ukraine, Iraq and the Gaza Strip. (AFP)

 

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