Depressed Brent dips under $120

Two-way trend: Higher output and lower than expected demand combine to drive oil prices down

Brent crude oil slipped below $120 per barrel, depressed by news of higher OPEC production and lower estimates of global oil demand.

The oil market is looking increasingly well supplied as Middle East output rises and fuel demand across the industrialised and developing economies is weaker than expected.

The International Energy Agency, which advises 28 industrialised nations on energy policy, said in its monthly report the oil market could be turning the corner after more than two years of tightening as global oil inventories rose.

"The cycle of repeatedly tightening fundamentals since 2009 has been broken for now," the IEA report said.

ICE Brent futures fell 53 cents to $119.65 a barrel by 1240 GMT, after touching a low of $119.51 earlier…

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