Oil slips to $103 on tepid growth outlook

Brent crude oil slipped to $103 per barrel as an uncertain outlook for growth in the world's two largest oil consumers, the United States and China.
Oil rallied from nine-month lows on expectations that stronger global economic activity would encourage more fuel consumption, but disappointing data capped the recovery.
Brent lost 16 cents to $103.00 per barrel. U.S. crude was up 15 cents at $93.15 a barrel.
Brent is more than 6 percent below its starting point in April, pressured by data suggesting the global economy remains on a fragile footing at best.

Brent drops below $99; demand worries persist

Brent crude fell below $99 per barrel weighed by the prospect of sluggish fuel demand in top consumers in the United States and China and in addition to rising stockpiles of U.S. crude.

More bleak economic news came courtesy of the International Monetary Fund (IMF), which trimmed projections for this year and next - implying limited upside for oil demand growth.

The North Sea benchmark has lost nearly 6 percent over the past five sessions in a wider commodities rout triggered by data showing growth in China, the world's second largest oil burner, had slowed unexpectedly in the first three months of 2013.

The head of the International Energy Agency, Maria van der Hoeven, said the oil price decline was proof that the market was adequately supplied.

Brent crude shed $1 to $98.91 after sinking earlier to $98.80, the weakest since July 2012. U.S. crude slipped $1.29 to $88.43.

Brent eases to near $107 as US, Italy rattle investors

Brent crude edged down towards $107 a barrel as a stalemate over fiscal talks in the United States and political uncertainty in Italy rattled investors, even as geopolitical tensions in the Middle East supported prices.

Investors shied away from riskier assets as U.S. politicians squabbled over ways to reduce debt, while Italian Prime Minister Mario Monti's decision to resign early raised fears that the country could stray from economic reforms needed to steer itself out of the financial crisis.

Tensions in the Middle East that threaten to disrupt oil supply have supported prices throughout the year. The region is facing fresh unrest in Egypt, fighting in Syria and global pressure on Iran to stop its nuclear programme.

Brent crude edged down 3 cents to $107.30 a barrel. U.S. crude was at $85.63, up 7 cents.

OPEC members collectively are producing about 1 million barrels a day of crude more than needed, swelling oil stocks at a time of weak demand, Iranian OPEC governor Mohammad Ali Khatibi said.

Gulf OPEC members want Brent oil at $100/barrel

Gulf members of the Organization of Petroleum Exporting Countries, led by Saudi Arabia, would like to see oil prices stabilize around $100 a barrel as high prices could slow down economic growth and hit demand. The price of a barrel of Brent--the most widely used benchmark globally--rose near $117 a barrel mid-September and has remained above $100.

Saudi oil minister Ali al-Naimi said that the world's top oil exporter is concerned about oil price levels given that they are not being caused by supply shortages and that the Gulf state will take all necessary steps to moderate them.

Mr. Naimi has previously said he considered $100 a barrel to be the ideal price for Brent to balance the needs of consumers and producers. He stressed that the Arab world's largest economy will continue to work with other Gulf countries and OPEC to defend the stability of the oil market.

High Saudi output helps keep oil prices down, benefiting fragile economies in the U.S. and Europe, which rely on the kingdom to keep up supply as they implement sanctions intended to press Iran over its nuclear program.

Oil rises more than $1 as tropical storm threatens supply

Oil futures rose more than a dollar with Brent climbing above $115 per barrel, on supply worries as Tropical Storm Isaac threatened to interrupt most U.S. offshore oil production in the Gulf of Mexico. Oil prices got a further boost from hopes of more U.S. stimulus measures, which would improve the outlook for demand from the world's top consumer of oil.

Brent crude futures had climbed $1.26 to $114.85 a barrel by 0824 GMT, after rising to a high of $115.50 earlier in the session. U.S. crude was up $1.13 at $97.28.

Oil prices fell on Friday after a report that the International Energy Agency is likely to tap strategic oil reserves as soon as September, dropping its resistance to a U.S.-led plan. But prices are now turning upwards ahead of the annual U.S. Jackson Hole meeting of central bankers and economists later this week, where Fed Chairman Ben Bernanke will deliver a speech that will be scoured for clues on a third round of quantitative easing. The markets will also look for policy signals from the euro zone ahead of a September 6 meeting of the European Central Bank.