IEA Follows Suit and Lowers Oil Consumption Growth

Brent crude oil neared an eight month low on Friday morning as investors worried about global demand growth. The commodity traded at $104.19 at 7:09 GMT and according to

, some analysts are expecting the commodity to continue sliding as low as $103.51. Brent prices have been under pressure since several of the world's top oil forecasters cut their growth expectations for 2013 this week. Both the Organization of the Petroleum Exporting Countries and the US Energy Information Administration forecast lower oil consumption growth in reports released earlier in the week. The EIA cut its expectations to 960,000 barrels per day, 50,000 bpd lower than its original estimate. OPEC's report showed oil consumption growth slowing to 800,000 bpd. On Thursday, the International Energy Agency confirmed growth worries by providing a similar forecast of 795,000 bpd, 25,000 bpd less than its previous estimate and the third reduction in as many months. Still, Brent found some support from geopolitical worries which continued to threaten supply interruption. The conflict between the West and Iran over Tehran's nuclear capability has long kept Brent prices elevated and since the two sides are no closer to a compromise despite several negotiation talks, many worry that the tension between the two will escalate. US jobs data also propped up oil prices as new figures relieved concern about the nation's labor market. After data showed job growth stalled in March, many worried that the US' economic recovery was falling off track. However, new data showed that unemployment claims fell by 42,000 to 346,000, the largest drop since mid-November