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World Oil Prices Hitting New Lows

A man pumps gasoline at a service station in Caracas, Venezuela, Aug. 7, 2014.

Crude oil prices have dropped to a nine-month low in Europe, with an industry research group reporting that the global supply of oil is more than adequate at the moment.

The price for Brent oil fell Tuesday on the London market to $103.61 a barrel, its lowest point since last November. The price for West Texas Intermediate crude sold in the United States stood at $97.43 a barrel, its lowest point since late last year.

The International Energy Agency, which advises industrialized nations on oil policy, said in a new report the uncertain global economy is holding down demand for more oil to fuel development and forcing the price of the key commodity lower.

Violence in oil producing nations can disrupt output, cut supplies and push oil prices higher.

But the IEA said that "despite armed conflict in Libya, Iraq and Ukraine, the oil market today looks better supplied than expected, with an oil glut even reported in the Atlantic basin."

The IEA lowered its forecasts for oil demand for this year and next.

Oil production in the United States has markedly increased as drillers have used new technology to tap underground sources that were previously unproductive, particularly in Texas and the state of North Dakota.