Brent crude was steady near $114 today as investors assessed the impact of the Greek debt crisis on risk aversion, which has taken almost 4 per cent off prices this week in the biggest drop since early May.
The euro slipped, with markets still unconvinced that Greece could dodge a default even after appearing to secure a round of near-term funding.
Brent crude for August slipped 5 cents to $113.97 a barrel by 5.09am., while US crude benchmark West Texas Intermediate was unchanged at $94.95.
US data over the week showed the economy of the world's top oil consumer continued to sputter in the second quarter, but also offered evidence the recovery was on course to regain momentum as the year progresses.
The International Energy Agency yesterday raised the pressure on OPEC to increase output by forecasting a steep rise in oil demand later this year and predicting the strain on supply would last over the medium term.
The Paris-based IEA raised its assessment of how much OPEC oil would be needed this year by 400,000 barrels per day to 30.1 million in a monthly report.
US Mid-Atlantic factory activity contracted in June to a near two-year low, overshadowing better than expected readings on the nation's labour and housing markets.
Meanwhile, oil prices will stay above $100 a barrel in the next year as supply worries outweigh concerns about flagging global economic growth, a Reuters survey of oil industry officials, executives and traders showed.
Eight of 20 participants in the Reuters Energy and Climate Summit said they saw oil trading between $110 and $130 a barrel in June 2012, eight saw prices between $90 and $100 and three saw prices above $130. Only one respondent saw prices between $70 and $90 per barrel.
A failure by Opec to boost output last week, despite calls from the West to help protect economic growth, has fuelled debate over whether Opec and leading member Saudi Arabia have enough spare capacity to open the taps if demand rises and prices spike.
Saudi Arabia is expected to raise output towards 10 million barrels a day (bpd) this month, sources said earlier this week, up from 8.86 million bpd in May.
Reuters
