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 The International Energy Agency slightly trimmed its estimates for
2016 global demand growth from last month to 1.16 million barrels
per day and said a deal to freeze oil production by OPEC and
non-OPEC producers will have a limited impact on global supply.
This came a day after OPEC cut its forecast for demand growth and
warned of further reductions.
Brent crude futures <LCOc1> were down 54 cents from their last close
at $43.64 a barrel by 0827 GMT. U.S. crude <CLc1> was down 47 cents
at $41.29 a barrel.
The world's biggest oil producers, including Saudi Arabia and
Russia, are scheduled to meet in Qatar on Sunday to finalise a deal
reached in February to freeze oil output at January levels, aiming
to bolster oil prices.
However, Russian oil minister Alexander Novak told a closed-door
briefing of energy analysts in Moscow on Wednesday that the deal
would be loosely framed with few detailed commitments.
"The agreement will not be very rigidly formulated, it is more of a
gentlemen's agreement," one of those present said, paraphrasing
Novak's words at the briefing.
"There is no plan to sign binding documents," another person at the
briefing present said.
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This suggests producers are unlikely to formally agree to rein in
production, which now stands at around 2 million barrels per day
(bpd) in excess of demand.
"It's not going to be an agreement, but a declaration of intent to
say that if everything goes well we'll keep production at January
levels," said Hans van Cleef, senior energy economist at ABN Amro in
Amsterdam.
(Additional reporting by Henning Gloystein in Singapore; Editing by
Susan Fenton)
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