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PARIS — Global demand for oil is still weighed heavily by weak economic growth, and this together with a supply glut is pushing down prices which may fall further, the International Energy Agency (IEA) said on Tuesday.

Cutting its forecasts for growth of oil demand for the third month in a row, the IEA indicated that this trend "may have touched bottom".

And set against this, supplies may soon begin to slow down.

"Nevertheless, further oil price drops would likely be needed for supply to take a hit — or for demand growth to get a lift," the agency said in its October report.

In trading on Tuesday, benchmark West Texas Intermediate oil was being priced at about $85 for November delivery and Brent oil was at about $88.

The IEA said most Brent was profitable at $80 a barrel, and that a Saudi Arabian official had recently suggested "that the high cost of shale oil [from North America] might put a floor under prices around $90 a barrel".

Although the speed of slowing oil demand growth was a "surprise", a "staggering" increase in supplies was a bigger factor behind the fall of prices and rise of stockbuilding, the IEA indicated.

The IEA again cut its forecasts for growth of global oil demand for the third month in a row.

For this year, it expects demand to rise by 700,000 barrels per day (bpd) to 92.4 million bpd which is 200,000 bpd less than the previous forecast.

This shrinking demand outlook in European and Asian members of the Organisation for Economic Cooperation and Development (OECD) matched average growth of 1 million bpd in countries outside the OECD areas, the IEA said.

The IEA is the oil-policy arm of the OECD which groups 34 advanced democracies.

For next year, the agency cut its estimate of global demand from 93.8 million bpd to 93.5 million bpd.

However, that represents an increase of 1.1 million bpd from the level this year because demand will pick up somewhat as the global economy brightens, pulled by emerging economies, the IEA explained.

September 'high-water mark' 

"While the abrupt slowdown in demand growth in the second quarter of 2014 has come as a surprise, supply growth looms larger as a factor behind the recent easing of market balances and OECD stock builds," the report said.

"It jumped to a staggering 2.8 million bpd in September year on year, as output from Organisation of Petroleum Exporting Countries swung back to growth for the first time in about two years," it added.

The agency indicated that "abundant" supplies, slowing demand and strength of the dollar had pushed down oil prices for the third month in a row, and the price of Brent oil for October delivery had fallen to less than $90 a barrel in October.

However, these steep price falls since June, with Brent oil price at four-year lows, "are casting doubt on the sustainability of current high supply growth rates", the IEA warned.

The IEA said "September may turn out to be a high-water mark for supply”.

This was also because growth from outside OPEC was expected to slow in the last quarter of this year, and because political risk to output in Libya and Iraq was "exceptionally high".

The IEA estimated that global production rose in September by 910,000 bd from the August level to 93.8 million bpd.

Output from the Organisation of Petroleum Exporting Countries (OPEC) rose by 415,000 bpd to 30.66 million bpd, boosted by increased output from Libya and Iraq.

Other producer countries increased their output by 495,000 bpd to 56.7 million bpd, owing to the end of maintenance stoppages in North America, the North Sea, Russia and eastern Europe.

At PVM oil market analysts in London, David Hufton commenting on the IEA report, said: "It makes no sense at all for OPEC members to try and defend price by cutting production only for non-OPEC producers to jump in and grab market share."

AMMAN — Omar Razzaz was appointed as chairman of the Jordan Ahli Bank (JAB) on Tuesday, succeeding Rajai Muasher, who resigned to “enable a new generation to lead the bank”, Al Rai reported. Saad Muasher was appointed as deputy chairman, succeeding Nadeem Muasher, who also resigned. The former JAB chairman noted that Razzaz, who also chairs the King Abdullah II Fund for Development’s board of trustees, was chosen due to his leadership skills and ability to deal with the requirements of the upcoming stage. Razzaz will not resign his positions in other institutions.

NEW YORK — Brent oil prices fell more than $2 a barrel to less than $88 on Monday, its lowest since 2010, after key Middle East producers signalled they would keep output high even if that meant lower prices.

Brent oil prices have tanked by nearly 25 per cent since June as ample supply coincided with weak demand, raising the possibility that the Organisation of the Petroleum Exporting Countries (OPEC) could cut output.

But Saudi Arabia has privately told oil market participants it can accept oil prices between $80 and $90 a barrel, sources briefed by OPEC's biggest producer told Reuters.

Kuwait's oil minister said on Sunday OPEC was unlikely to cut production to support prices. OPEC is due to discuss output at its next meeting November 27.

"It suggests there's some nervousness in the market that Saudis are seeking to bring pressure on the shale producers in the US," said Gene McGillian, an analyst at Tradition Energy.

"The market is in search of a bottom and we're in the process of finding it, we just have to see what OPEC does and where the economy goes," McGillian added.

Early on Monday, Brent crude touched its lowest since December 2010 at $87.74. But Brent pared losses, trading down $2.04 on the day at $88.17 by 1512 GMT. US crude was down $1.12 at $84.70.

Growth in China's exports and imports trumped forecasts in September, and the world's largest energy consumer increased crude oil imports by 9.5 per cent from August, lending limited support to prices.

Consuming countries like China and India often build up stockpiles when prices are low.

Oil prices could be on the brink of sliding another $10 or more, some analysts said. They say a drop of over 20 per cent since June has wiped out key support levels and left behind a "technical graveyard".

"If Brent closes below $88.49, I'm pretty certain that further downward pressure can be expected until the next significant level at $82.35," said Tamas Varga, an analyst at brokerage PVM Oil Associates in London.

Iraq cut its November oil prices for customers in Asia and Europe on Sunday, following a similar move by Saudi Arabia last week.

Kuwait's Oil Minister, Ali Al Omair, was quoted as saying by state news agency KUNA on Sunday that $76 to $77 a barrel might be the level that would end the oil price slide, since that was the cost of oil production in the United States and Russia.

"We are firmly entrenched in the bear market, not only in Brent, but also in WTI," said Tariq Zahir, analyst at Tyche Capital Advisors. "I would be surprised if in the next month we break $80, barring a hurricane or ISIS going into the Southern part of Iraq."

AMMAN — Kamel Mahadin, chief commissioner of the Aqaba Special Economic Zone Authority (ASEZA), on Monday underlined the importance of increasing the trade volume between Jordan and Turkey. He made his remarks at a meeting with a Turkish economic delegation, during which he noted that around $100 million worth of projects have been implemented in ASEZA during the last two years. Mahadin cited a $54 million agreement with the Turkish Sanmar Company to build seven trailers for the Aqaba Port Company for Marine Services.  

AMMAN — Planning and International Cooperation Minister Ibrahim Saif met with World Bank (WB) President  Jim Yong Kim and other officials from the bank during his recent participation in the WB and the International Monetary Fund (IMF) annual meetings. He also spoke at a roundtable discussion held by the WB with the private sector and was the key speaker at a ceremony to launch the bank's report on jobs and incentives in the Middle East and North Africa region. 

AMMAN — The Second Arab-British Economic Forum, to be held in London next week, will offer a "big" opportunity to promote Jordan's investment environment, according to Jordan Chamber of Commerce President Nael Kabariti. In a statement, he said the forum is organised in cooperation between several bodies, including the chamber and the Arab League, adding that a delegation of officials and representatives of the private sector will take part in the event. Kabariti noted that the trade volume between Jordan and the UK reaches £11 billion each year. 

KUWAIT CITY — Kuwaiti Oil Minister Ali Al Omair said Sunday he expects falling crude prices to recover in winter indicating that the Organisation of Petroleum Exporting Countries (OPEC) was unlikely to counter the slide in the short term.

"We expect [oil prices] to increase in the winter season or at least preserve its current level," said Omair, cited by the official KUNA news agency.

The minister also said he believes that oil prices will not drop below $76-$77 a barrel, which is the production cost in Russia and the United States.

The decline was expected due to geopolitical factors, a rise in supplies and negative forecasts for global economic growth, Omair explained.

He said Kuwait has not received any invitation for an emergency OPEC meeting to discuss prices but would attend if the call came up.

However, a cut in OPEC production "may not necessarily boost prices" because of high output by other producers, especially Russia and the United States, he said.

Oil prices closed slightly higher Friday following massive losses in a market gripped by worries about weakening global demand and a supply glut.

US benchmark West Texas Intermediate for November delivery edged up five cents to close at $85.82 a barrel on the New York Mercantile Exchange after sinking to $83.59 in early Asian trade.

Brent North Sea crude for delivery in November recovered from a four-year low to score a gain of 16 cents, settling at $90.21 a barrel in London. Since June, Brent has lost around $25 a barrel.

Separately, Venezuela will ask for an emergency meeting of OPEC countries to try to halt sliding oil prices, Foreign Minister Rafael Ramirez said Friday.

A barrel of Venezuelan crude closed at $82.72 on Friday, a drop of $3.17 for the week, one of the lowest levels in the past three years.

"We are going to ask for an extraordinary OPEC meeting. We need to try to coordinate some sort of action to stop falling oil prices," Ramirez said at a Caracas news conference.

"I am convinced this is not due to market conditions, but is price manipulation to create economic problems for large oil-producing businesses," added Ramirez, who is the former oil minister and ex-head of the public oil company PDVSA.

This year, Venezuelan crude has averaged $94.99 per barrel, compared to $98.08 in 2013 and $103.42 in 2012.

"It doesn't suit anyone if the price of oil falls below $100 a barrel," Ramirez said.

The next regular OPEC meeting is scheduled for November 27 at the group's Vienna headquarters in Austria.

According to Ramirez, the price drop is due to an overproduction in non-OPEC countries — a reference to shale oil, of which the United States is the world's top producer.

While it has some of the world's biggest oil reserves, Venezuela only produces 2.4 million barrels a day, which bring in 96 per cent of its foreign currency reserves.

The 12 members of OPEC, who pump about a third of the world's crude, said Friday that world demand will grow by 1.05 million barrels per day (mbpd) to 91.19 mbpd this year.

For 2015, OPEC predicted demand to reach 92.38 mbpd, unchanged from its previous forecast.

AMMAN — Jordan Enterprise Development Corporation (JEDCO) announced on Sunday in a press statement that the deadline for receiving applications for  the Development of Exports Programme through the virtual marketplace had been extended to October 30, 2014. Small- and medium-sized enterprises (SMEs) in Jordan are set to increase their exports by tapping trade opportunities in virtual marketplaces (VMPs), as part of a new joint project of the World Bank and the International Trade Centre (ITC). As part of the “increasing SMEs” exports through virtual marketplaces’ project, Jordanian SMEs will learn to use VMPs as new export channels to connect with business partners and buyers, increase sales and reach out to new markets. ITC will train and certify 20 specialised export advisers to provide SMEs with coaching and advisory services in three priority product groups: Specialised gourmet agro-processed foods, handcrafts and information technology-based services. The selected SMEs will receive training and support to become active exporters on the VMPs, managing online transactions and sales, as well as developing functions such as client-relationship management, digital marketing and after-sales service among others. The “increasing SMEs” exports through virtual marketplaces’ project is funded by the Transition Fund and established under the Deauville Partnership. 

AMMAN — Amman Chamber of Industry announced Sunday in a press statement that six companies have so far benefited from the services offered by German-Jordanian Economic Cooperation Office, which was opened earlier this year in the chamber building, with the support of the German Federal Enterprise for International Cooperation GIZ. The statement indicated that one of the firms was able to enter the German market in a very short time after providing it with information about the German institutions that issue importing licences, as well as linking other companies with similar companies in Germany. Senator Ziad Al Homsi urged the industrial sector to benefit from the German expertise to develop the national industry.

WASHINGTON — The International Monetary Fund's (IMF) member countries on Saturday said bold action was needed to bolster the global economic recovery, and they urged governments to take care not to squelch growth by tightening budgets too drastically.

With Japan's economy floundering, the eurozone at risk of recession and the US recovery too weak to generate a rise in incomes, the IMF's steering committee said focusing on growth was the priority.

"A number of countries face the prospect of low or slowing growth, with unemployment remaining unacceptably high," the International Monetary and Financial Committee said on behalf of the fund's 188 member countries.

The fund last week cut its 2014 global growth forecast to 3.3 per cent from 3.4 per cent, the third reduction this year as the prospects for a sustainable recovery from the 2007-2009 global financial crisis have ebbed, despite hefty injections of cash by the world's central banks.

The IMF has flagged Europe's weakness as the top concern, a sentiment echoed by many policy makers, economists and investors gathered in Washington for the fund's fall meetings, which wrap up on Sunday.

European officials have sought to dispel the gloom, with European Central Bank President Mario Draghi on Saturday talking about a delay, not an end, to the region's recovery.

But efforts to provide more room for France to meet its European Union deficit target looked set to founder on Germany's insistence that the agreement on fiscal rectitude was set in stone.

The IMF panel urged countries to carry out politically tough reforms to labour markets and social security to free up government money to invest in infrastructure to create jobs and lift growth.

It called on central banks to be careful when communicating changes in policy in order to avoid financial market shocks. While not naming any central banks, the warning appeared aimed at the US Federal Reserve, which will end its quantitative easing policy this month and appears poised to begin raising interest rates around the middle of next year.

The Fed has debated a change to its commitment to holding rates near zero for a "considerable time" at its recent policy meetings, but is stepping gingerly to avoid roiling financial markets. 

It wants to avoid a repeat of the "taper tantrum" it touched off last year when it signalled its easing of monetary policy was drawing to a close.