Oil prices steady as demand forecast cut

Oil prices steadied on Tuesday after the International Energy Agency cut its forecast for global energy demand, citing economic weakness. New York's main contract, light sweet crude for delivery in October, rose 33 cents at $88.52 a barrel. Brent North Sea crude for October delivery dipped 10 cents to $112.15 a barrel approaching midday trade in London. Global demand for oil will be lower than expected this year and next because of the economic slowdown, the International Energy Agency said on Tuesday. The IEA cut its estimate for this year by 200,000 barrels per day and by twice as much, 400,000 bpd, for 2012. Also citing the poor economic climate, OPEC on Monday forecast 2011 demand at 87.99 million barrels per day bpd, down from a previous estimate of 88.14 million barrels per day. The IEA meanwhile noted on Tuesday that an oil price "paradox" is at work despite a revival of Libyan production. "The potential for weaker oil demand is tempering price moves on the upside. Oil prices have been held hostage to almost daily negative economic and financial market reports," the IEA said in its monthly report. But it also warned that "supply woes may yet keep a floor under prices heading into the fourth quarter of 2011 winter demand period."