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
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