THE International Energy Agency cut its forecasts for global oil demand in 2013 for a third consecutive month and predicted the weakest consumption in Europe since the 1980s.

The IEA shaved its estimate by 45,000 barrels a day, predicting that world consumption will increase by a "subdued" 795,000 barrels a day, or 0.9 percent, to 90.58 million barrels a day this year. European demand will slump by 340,000 barrels a day. Still, an imminent recovery in refinery operations after maintenance and political threats to supply mean "it may be too early to call a bear market," the IEA said.

"Europe remains by far the worst affected of all the large oil consumption regions, as the ravages of the bleak macro-economic backdrop continues to take its toll," the Paris-based group said in its monthly oil market report.

Brent futures have fallen 12 percent from this year's intraday peak, trading around US$105 a barrel in London yesterday, as the euro area struggles to move beyond its debt crisis, China shows muted signs of recovery and the US Federal Reserve may cut its bond-buying program.

European oil demand will drop to 14.1 million barrels a day this year, the IEA said. Global consumption is backed by China, where demand will rise this year by 380,000 barrels a day, or 3.9 percent, to 10 million a day, the report said.