WTI, Brent hit session lows after IEA lowers demand forecast

Investing.com - West Texas Intermediate and Brent oil futures fell to the lowest levels of the session on Tuesday, after International Energy Agency cut its forecast for global oil demand for the fourth month in a row.

On the New York Mercantile Exchange, crude oil for delivery in November traded at $84.83 a barrel during European morning hours, down 92 cents, or 1.07%.

Nymex oil futures fell to $83.59 a barrel on October 10, a level not seen since July 2012.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for December delivery tumbled $1.09, or 1.22%, to hit $88.32 a barrel.

London-traded Brent futures hit $87.10 a barrel on Monday, the weakest level since December 2010.

In its closely watched monthly oil market report published earlier, the IEA lowered its forecast for oil demand growth this year for the fourth month in a row, amid ample global supplies and slowing demand in the U.S., China and Europe.

The agency said it now expected global oil demand for 2014 to total 92.4 million barrels a day, down 200,000 barrels per day from its September report.

The IEA added that it believes that demand growth "may have touched bottom" and should steadily improve.

London-traded Brent prices have fallen nearly 23% since June, when it climbed near $116 following violence in the Middle East and North Africa, while WTI futures are down almost 21% from a recent peak of $107.50 in June.

Global supplies have far outpaced demand in recent months, sparking speculation among traders about whether the Organization of the Petroleum Exporting Countries would lower production to prop up prices.

OPEC oil ministers are scheduled to meet in Vienna on November 27 to consider whether to adjust their production target of 30 million barrels per day for early 2015.

A report last week showed OPEC oil output hit a two-year high of 31 million barrels per day in September, led by higher output from Iraq and Libya.

Despite calls for a cut in output, Kuwait's oil minister Ali al-Omair said Monday that the cartel is unlikely to lower production to support prices.

Meanwhile, Saudi Arabia has privately told oil market participants that it is ready to accept oil prices below $90 per barrel, and perhaps down to $80, for an extended period in an effort to slow the expansion of rival producers and retain its market share across Asia and Europe.

Saudi Arabia is the largest exporter among OPEC members and produces approximately 10 million barrels of oil a day.

Investor sentiment was also hit amid concerns about global economic weakness, while growing fears over the spread of Ebola also weighed.