2017.11.1423:17:00UTC+00Oil Prices Extends Decline as IEA Stokes Skepticism over Demand Prospects

Oil prices slipped on Wednesday, continuing the previous day's decline after the IEA cast seeds of doubt regarding the previous month's perceived tightening in the fuel markets.

Brent crude futures stood at $61.47 per barrel, falling 74 cents or 1.2 percent from their last settlement. Meanwhile, the U.S. WTI crude traded at $55.10 per barrel, falling 60 cents or more than 1 percent from their last close.

The latest retreat now means that prices are down by almost 4 percent since scaling 2015 peak levels in the previous week, snapping a 40-percent rally between June and the first weeks of November.

According to ANZ bank, crude oil prices steeply declined after IEA increased doubts regarding the market's prospect for 2018.

On Tuesday, the International Energy Agency slashed its oil demand growth projection by 100, 000 bpd for 2017 and 2018, to an estimated 1.5 million bpd this year and 1.3 million bpd in the following year. According to the agency, demand is expected to be outstripped by demand by 600, 000 in 1Q18 after a surplus of 200, 000 bpd in 2Q18, providing challenges for the market.