•IPE Brent futures in London fell Friday after the International Energy Agency cut its estimate of 2006 oil demand growth and market players looked to reduce their long positions ahead of the weekend, traders said. At 1052 London time (0952 GMT) the front-month June IPE Brent futures contract was trading 83 cents down on Thursday's close $72.61/barrel.

•On a longer term note, there have been reports suggesting that some funds expect the price of crude futures to halve by this time next year. Traders also noted that the cut in oil demand growth by the IEA may have had a possible effect on the downturn in prices.

•The IEA, in its latest monthly oil market report earlier Friday, said it now expected world demand for oil to rise by 1.25 million b/d this year, down from a previous projection of 1.47 million b/d. In outright terms, the IEA expects demand to average 84.83 million b/d in 2006, up from 83.59 million b/d in 2005.

Updated: 05/12/06

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