Brent crude oil fell following the OPEC's monthly report which decreased growth forecasts in both the US and the eurozone. The commodity traded at $109.68 at 8:07 GMT on Wednesday morning following the report's release.
The OPEC report not only decreased the growth expectations in both the US and the eurozone, but also forecast increasing US oil output. Even though the report predicted demand growth to remain steady, the data put pressure on Brent prices.
In contrast, the US Energy Information Administration cut its forecast for world oil demand in 2013 in its own monthly report; however it also reduced expectations for non-OPEC output as well.
According to CNBC, South Korea plans to close a tax loophole affecting crude imports processed for fuel exports. The change could affect the flow of North Sea crude from Europe to South Korea, which weighed on Brent prices.
Brent found some support with news from China indicating that the nation's implied energy demand improved in February. The 4.9 percent rise from February 2012's figures helped add to speculation that Chinese growth will keep oil demand strong in the future.
Tension in the Middle East has long kept Brent prices above $100 as the unstable region threatens to interrupt supply. In Iran, sanctions have kept oil exports suppressed as the West attempts to cut funding to the nation's disputed nuclear program.
Recent negotiations have left the two sides at a stalemate, but meetings planned for March and April are promising. Western diplomats are offering to lift some of the sanctions in exchange for Iran's promise to curb its nuclear development program.
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