Oil slips, extends losses on demand worries

U.S. oil slipped 10 cents to $100.93 a barrel by 8:02 pm EDT (0002 GMT), after settling down $1.44, the lowest since February 14 and below its 100-day moving average of $101.65.

Brent crude traded 32 cents lower at $119.56 a barrel, after settling $2.79 lower at its weakest since February 17, and below the 50-day moving average of $121.84. The 2.27 percent slide was the biggest one-day percentage loss since December 14.

FUNDAMENTALS

U.S. crude oil inventories rose sharply last week as domestic production reached a 13-year high, while imports slipped, weekly data from the American Petroleum Institute (API) showed on Tuesday.

Iran's oil production could fall almost 15 percent this year due to reduced foreign investment, the U.S. Energy Information Administration (EIA) said in a report highlighting the growing strain on Tehran's oil sector even before factoring in the effect of new sanctions.

Iran has cut oil exports to Spain and may halt sales to Germany and Italy, Iran's English-language state television reported, in an apparent move to strengthen its position ahead of crucial talks with world powers this week.

The next round of nuclear talks aimed at resolving a standoff between the West and Iran over its nuclear program will be held in Baghdad following this week's negotiations in Istanbul, Iraq said on Tuesday.

Two Federal Reserve officials expressed concern about the central bank's ultra-loose policy on Tuesday, keeping pressure on their colleagues not to launch another round of monetary easing.

Greece will call a snap election for May 6 on Wednesday, government officials said, launching a campaign that may produce no clear results and risk implementation of the bailout plan that saved Athens from bankruptcy.

Syrian forces pressed home a sustained assault on opponents of President Bashar al-Assad, ignoring an international peace plan under which troops were to silence their guns and withdraw from urban areas.

MARKETS NEWS

The safe-haven yen hovered at multi-week highs against many currencies in Asia on Wednesday, while the Australian dollar floundered as worries about global growth took another bite at risk sentiment. <USD/>

The selloff in U.S. stocks accelerated on Tuesday, as the Dow and S&P 500 dropped for a fifth day, with the pullback coming on the cusp of earnings season. The slide marked the S&P 500's worst day since December 8. The declines were the largest losses this year in terms of both points and percentage drops for each of the three major U.S. stock indexes. .N

(Reporting by Manash Goswami; Editing by Sugita Katyal)