Crude prices fall on demand worries

Crude prices dropped Friday on speculations that global crude consumption growth is slowing.
The International Energy Agency (IEA) trimmed global oil demand growth for 2014 and 2015 to 0.9 million barrels per day (mb/d) and 1.2 mb/d, respectively, because of a pronounced slowdown in demand growth in the second quarter of this year and a weaker outlook for Europe and China, said IEA Oil Market Report (OMR) for September.
Demand in 2015 is now set at 93.8 mb/d, the monthly report predicated.
OECD industry inventories built seasonally by 15.5 million barrels in July to 2,670 million barrels, on soaring U.S. stocks of "other products." Preliminary data indicate that stocks continued their upward trajectory in August, rising by 19.5 million barrels.
The weaker demand outlook as well as robust non-OPEC supply growth led the OMR to trim its "call on OPEC crude and stock change" for the fourth quarter of this year.
U.S. economic data came in mixed. U.S. retail and food services sales for August rose 0.6 percent, and the July reading was upwardly revised from virtually unchanged to a 0.3-percent gain, said the Commerce Department. The August reading was in line with market expectations.
Separately, U.S. consumer sentiment hit the highest level since July 2013. Data showed the preliminary September reading on the University of Michigan/Thomson Reuters consumer-sentiment index rose to 84.6, up from the final August reading of 82.5.
Light, sweet crude for October delivery moved down 56 U.S. cents to settle at 92.27 dollars a barrel on the New York Mercantile Exchange, while Brent crude for October delivery lost 97 cents to close at 97.11 dollars a barrel.