--Nymex crude slides from Tuesday's 12-week high to rise 1.6% on
the week
--IEA lowers 2013 global oil-demand forecast by 0.2 million
barrels a day
--China's July crude-oil imports slip to lowest level since
December
(Adds Brent settlement price.)
By Nicole Friedman
NEW YORK--Oil prices fell as a widely watched market forecaster
lowered its estimate for the growth in crude demand next year. The
decline left prices up only 1.6% on the week despite surging to a
three-month high Tuesday.
The International Energy Agency lowered--by 20%--its forecast
for 2013 global demand growth. The energy watchdog cited worries
about the world's economy in cutting its expectations to 0.8
million barrels a day from its earlier estimate of 1 million
barrels a day.
"They gave a pretty downbeat outlook," John Kilduff, a founding
partner of Again Capital, said of the report. "It was fairly
negative."
The IEA echoed an Organization of Petroleum Exporting Countries
report Thursday. The group warned that it could lower its own
demand-growth forecast for 2013 by up to 20%. OPEC blamed an
economic slowdown in Asia, particularly in China, the world's No. 2
oil consumer.
Light, sweet crude for September delivery fell 49 cents to
settle at $92.87 a barrel on the New York Mercantile Exchange.
Brent crude lost 27 cents, or 0.2% to settle at $112.95.
Prices also were dented by signs that China's economic engine
was losing steam. The nation's July trade surplus fell to $25.1
billion, well below the forecasted $35.2 billion.
In addition, China reported its lowest level of crude-oil
imports in nine months.
Pessimistic Chinese data recently have supported oil prices, as
traders hoped signs of a slowdown would prompt the Chinese
government to implement new stimulus measures to boost economic
growth.
However, "the steady stream of negative news out of not only
China, but the U.S. and Europe as well, has become so great that it
is finally trumping stimulus-led expectations for growth,"
brokerage Tradition Energy said in a note.
The sagging predictions of demand closed out a week where U.S.
crude futures rose to a 12-week high of $93.67 a barrel Tuesday on
several factors.
Fears about the demise of the euro zone were significantly
calmed by European Central Bank President Mario Draghi's promise to
do "whatever it takes" to save the single currency two weeks ago,
market participants said.
At the same time, rising tensions in Syria put upward pressure
on crude. Syria produces a miniscule amount of oil, but Iran is a
major backer of Syrian President Bashar al-Assad. Traders and
analysts fear that if things unravel in Syria, Iran may move to
disrupt oil supplies from the region.
News out of Syria and Iran has been "helping to boost" prices,
Mr. Kilduff said.
Hopes that the Fed would institute another round of monetary
stimulus also helped buoy the market in recent weeks. Crude futures
receive a double benefit from such actions. First, any additional
economic activity stirred will likely spur demand for more oil.
Also, stimulus normally weakens the dollar, raising the price of
dollar-denominated crude futures.
But the slack demand outlook slammed the lid on the rising
momentum in prices Friday, according to Tariq Zahir, a managing
member of Tyche Capital Advisors.
"Prices are relatively capped to the upside," Mr. Zahir
added.
Front-month September reformulated gasoline blendstock, or RBOB,
rose 3.1 cents, or 0.1%, to settle at $3.0039 a gallon. September
heating oil fell 2.45 cents, or 0.8%, to $3.0205 a gallon.
More information on settlements and highs and lows for futures
on Nymex and ICE platforms can be found by searching for the
following headlines:
Nymex Light Crude Oil Close
Nymex Harbor RBOB Gasoline Close
Nymex Heating Oil Close
ICE Brent Crude Oil Close
ICE Gas Oil Close
Write to Nicole Friedman at nicole.friedman@dowjones.com