IEA cuts forecast for 2014 oil demand growth

The rich world's oil watchdog, the International Energy Agency (IEA), has cut its forecast for the increase in oil demand this year.

The IEA now projects global oil demand will rise by 700,000 barrels a day, instead of the 900,000 barrels it anticipated in it last monthly oil report.

Weakness in demand growth may have bottomed however, the IEA added.

The oil market has come under pressure as a result of slowing growth prospects in the Eurozone, China and some key emerging markets, just as production in Libya - in particular - has recovered, while Saudi Arabia recently increased its own output and lowered prices in a bid to retain market share.

US dollar strength has also sapped the strength of the crude price despite the northern hemisphere being on the verge of entering the winter, a seasonally robust period of trading.