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UPDATE 3-Oil falls below $115 on IEA weaker oil demand view

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* IEA cuts 2011-1016 global oil demand growth

* BP to export U.S. crude to Canada, Shell seeks permit

* Turkey-Syria tensions, lower N.Sea output support

(Updates previous Singapore)

By Alice Baghdjian

LONDON, Oct 12 (Reuters) - Oil fell below $115 a barrel onFriday, as a prediction of a further decline in oil consumptionand higher supplies offset concerns about potential outputdisruptions in the Middle East.

The International Energy Agency (IEA) said ample supply fromNorth America and Iraq coupled with declining global demandcould lead to an easing of oil prices over the next five years.

Brent crude had fallen $1.18 to $114.53 a barrel by0924 GMT. U.S. crude was down 26 cents at $91.81.

The IEA cut its global oil demand growth projection for2011-2016 by 500,000 barrels per day (bpd) compared to itsprevious report, easing the pressure on OPEC to produce moreoil.

It also cut its 2013 global oil demand projection by 100,000bpd to 90.48 million bpd, citing lower consumption in Europe,the Americas and China.

"It seems like the market has reacted on the negative side.Crude oil prices reversed from yesterday's gains amid concernsover confirmation of the global oil demand growth," said MyrtoSokou, a senior research analyst at Sucden Financial.

"The bearish IEA figures set the tone for the day so we canexpect further declines for today's trading session," Sokousaid.

Oil major BP Plc has secured U.S. governmentpermission to ship U.S. crude oil to Canada, and Royal DutchShell has applied for an export license, as risingproduction in the world's top oil consumer upends global energyflows.

"This will significantly alter the oil market dynamics inthe coming years as U.S. crude imports are expected to declineand exports to rise," said Ryoma Furumi, a commodity salesmanager at Newedge Japan.

"If exports start rolling out in full force, WTI couldregain its ground against Brent."

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Graphic on WTI-Brent spread Graphic on 24-hr Brent chart analysis ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

But support for oil prices remains as more than a week ofrising tension between Turkey and Syria has stoked fears overpotential disruption of oil supply from the region. The port ofCeyhan, through which more than 400,000 barrels per day of Iraqicrude flows, is located on the Turkish Mediterranean.

Syria accused Turkey of "air piracy" on Thursday afterAnkara grounded a Damascus-bound passenger plane it said wascarrying munitions.

"Even though Syria and Turkey do not produce a lot of oil,market participants are worried that tensions could spread tosome of the major producers," ANZ analysts said in a note.

(Additional reporting by Florence Tan in Singapore, Editing byWilliam Hardy)

((Alice.Baghdjian@thomsonreuters.com)(+44 207 542 7714))

Keywords: MARKETS OIL/