Crude prices drop on ample supplies

Crude price retreated Tuesday as the International Energy Agency (IEA) lowered its growth forecast for 2014 global oil demand.

The IEA Oil Market Report (OMR) for August lowered its 2014 global oil demand growth forecast to 1.0 million barrels per day ( mb/d) on the International Monetary Fund's weaker outlook for economic growth.

OPEC (Organization of the Petroleum Exporting Countries) crude oil supply rose by 300,000 barrels per day to 30.44 mb/d in July, a five-month high, as a boost from Saudi Arabia to 10 mb/d and a tentative recovery in Libyan output more than made up for declines in Iraq, Iran and Nigeria.

The global oil supply increased to 93.0 mb/d in July, with higher OPEC output countering slightly lower nonOPEC supply.

OECD (Organization for Economic Co-operation and Development) industry stocks posted their sixth consecutive monthly build in June, rising 13.8 mb to stand at 2,671 mb at the end of the month, their highest level since September 2013.

Brent crude price dropped more amid eased geopolitical worries. Russia has reportedly ended its military drill near the Ukrainian border, and Israel and Hamas agreed Sunday to launch a new 3-day truce.

Light, sweet crude for September delivery moved down 71 cents to settle at 97.37 U.S. dollars a barrel on the New York Mercantile Exchange, while Brent crude for September delivery lost 1.66 dollars to close at 103.02 dollars a barrel.