Reply #30: Oil extends slide to $112 on demand concerns

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http://www.reuters.com/article/2011/05/12/us-markets-oil-idUSL3E7G601S20110512

(Reuters) - Oil slipped to around $112 a barrel on Thursday, extending the previous session's sell-off, after a report from the International Energy Agency added to concern about high prices and demand destruction.

The IEA, which advises 28 industrialized countries, cut its 2011 global oil demand growth forecast to 1.29 million barrels per day (bpd) from 1.43 million bpd, citing high prices and a weaker economic outlook for developed economies.

Brent crude fell 68 cents to $111.89 a barrel by 0935 GMT, adding to Wednesday's $5 drop which was sparked by rising U.S. gasoline inventories and falling domestic demand for the fuel. U.S. crude lost $1.05 to $97.16.

"We clearly have seen demand growth slowing compared to last year's level and we're seeing it very much concentrated where the price feed through is most direct, notably in North America in terms of gasoline," said David Fyfe, head of the IEA's Oil Industry and Markets division.