Oil Losses Exacerbates As IEA Cuts Forecast

Oil.....

Crude oil losses exacerbated in the Asia electronic session today as traders reacted to the cut in the price forecast by IEA yesterday. Earlier in the week OPEC had also downgraded the demand for oil.
The International Energy Agency once again cut its outlook for global oil demand Thursday, but warned significant supply risks continue to threaten the market. The downward revision by the Paris-based consumer group reflects similar moves by other industry forecasters earlier this week as concerns over the state of the global economy continue to weigh on demand expectations.
In its monthly oil market report published Wednesday, the Organisation of Petroleum Exporting Countries downgraded its forecast of world oil demand growth by 40,000 barrels a day for 2013, while the U.S. Energy Information Administration cut its outlook by 140,000 barrels a day.
In its closely-watched monthly oil market report published Thursday, the IEA cut its expectations of oil demand growth to 795,000 barrels a day down from 820,000 barrels a day last month.
The decline reflects exceptionally weak demand from industrialized countries, particularly in Europe where consumption in 2013 is expected to be the lowest since the 1980s, the IEA said.
The IEA also warned that insecurity in Libya is threatening to derail the countrys production outlook. Output fell by 40,000 barrels a day last month to 1.36 million barrels a day, according to the IEAs data. That is 150,000 barrels a day lower than the official figure provided by Libya to OPEC in its most recent report, published Wednesday.
Iranian output also remains constrained by strict Western sanctions with exports falling to 1.1 million barrels a day in March, down from 1.26 million barrels a day in February, the IEA said.
NYMEX light sweet crude oil futures are trading down 23 cents at $ 93.28 per barrel. On Thursday it dropped $1.13, or 1.2%, to $93.51 a barrel on the New York Mercantile Exchange after the IEA said it now expects global oil-demand growth of 7
95,000 barrels a day, down from a previous forecast of 820,000 barrels a day.
MCX April crude oil futures may open today’s session near Rs 5080 levels with resistance near Rs 5110 levels and support near Rs 5040 levels.
Source by Commodity Insights