Brent Crude Declined Amid Middle East Tension; WTI Fell

by on August 12, 2014 1:43 pm BST

WTI for September delivery fell as much as 98 cents to $97.10 a barrel in electronic trading on the New York Mercantile Exchange. Prices are down 1 percent this year.

Brent crude declined for a third day to its lowest in nine months as the IEA said a supply glut was shielding the market against threats in the Middle East.

Futures slid as much as 1 percent in London, heading for their biggest drop in a week. The Paris-based IEA cut projections for oil demand growth this year and next and estimated that output from the Organization of Petroleum Exporting Countries rose to a five-month high. Still, the political crisis in Baghdad escalated as Prime Minister Nouri al-Maliki rejected a plan for succession as militant Sunni fighters of the Islamic State held swaths of the country.

Brent for September settlement dropped as much as $1.08 to $103.60 a barrel on the London-based ICE Futures Europe exchange, the lowest intraday level since Nov. 8. It traded for $103.78 at 12:49 p.m. London time. The volume of all futures traded was about 53 percent above the 100-day average for the time of day. The European benchmark crude was at a premium of $6.35 to WTI, compared with $6.60 yesterday.