Crude prices fall as IEA revises down oil demand

Crude prices dropped to its lowest level since June 2012 Tuesday, as the International Energy Agency (IEA) lowered its projections for global oil demand in the remaining time of this year and the next.

The IEA cut its global oil demand forecast over the next two months by 200,000 barrels per day than its previous projection. According to the agency, oil demand is projected to increase in 2015 from this year, but at a slower growth pace than what was expected earlier.

Adding to woes in the crude market, weakening oil demands coincided with ample supplies. The U.S. Energy Information Administration on Tuesday lifted its projections on the country's shale oil and gas productions in its shale basins, which had put a continuously downside pressure on the world's oil prices.

Light, sweet crude for November delivery sank 3.90 U.S. dollars to settle at 81.84 U.S. dollars a barrel on the New York Mercantile Exchange, while Brent crude for November delivery lost 3.85 dollars to close at 85.04 dollars a barrel.

On the previous day, the crude prices dropped after Saudi Arabia, the biggest oil producer of the Organization of Petroleum Exporting Countries, reportedly said that it can accept oil prices between 80 dollars and 90 dollars a barrel.