Brent crude oil slid to $105.51 at 6:36 GMT on Thursday morning amid growing concern about global demand caused by higher inventories and reduced global demand forecasts.
Following the US Energy Information Administration's revised, lower 2013 oil demand projection earlier in the week, the Organization of Petroleum Exporting Countries followed suit and trimmed its forecast for oil demand growth as well.
The news caused Brent prices to slide as investors reevaluated their optimism about the current economic recovery.
According to Reuters, OPEC's revised projection cut 40,000 barrels per day from its previous estimate and now expects the world's oil demand to increase by just 800,000 bpd. The reason for the cut was lower than expected oil needs in developed economies, specifically in Japan and Europe.
Moving forward, investors will be watching for the International Energy Agency's updated oil demand outlook, due out later in the day on Thursday.
The revised demand forecasts built on uncertainty caused by US jobs data, which showed American employers hired less than half of the staff economists were expecting in March.
Brent has found some support from Chinese data which showed that the number two oil consumer's recovery was on track. Easing inflation and growing imports and exports all suggested that Chinese lawmakers have designed effective policies to help revive the economy.
Oil prices are also underpinned by the growing tension in North Korea, whose medium range missile has been moved to readiness position. The missile's launch would be a demonstration of force as well as a threat to both South Korea and the United States.
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