Crude oil came off its five week highs today, succumbing to a heavy sell off in European trades as the Organization of Petroleum Exporting Countries (OPEC) warned about the global oil demand due to lingering worries on Chinese and European front. The WTI Crude oil futures fell through $96 per barrel and broke under $95 as well, dropping around two dollars per barrel on the day to quote at $94.50 per barrel right now.
The Organization of Petroleum Exporting Countries (OPEC) left its oil supply and demand forecasts unchanged but maintained a cautious outlook on possible demand destruction from China and the euro zone in its monthly update. The OPEC said that world oil demand went up less than expected in the first quarter of the year. Demand is expected to grow by 800,000 barrels a day, the group said, but warned economic headwinds could see further downward revisions to this forecast.
While at the beginning of the year it looked as if further momentum was building up, the continued decline in the euro zone, the significant deceleration in the first quarter in some of the Asian economies and the recently acknowledged slow-down in Russia all have the potential to again push growth down slightly further, OPEC said.
The Asian equities were in a good touch today; rally on back of a persistent weakness in Japanese Yen. The Yen fell to a four and half year low against the US dollar today. Crude stayed supported amid these cues but flipped back the direction quite quickly in the European trades. MCX Crude oil futures for May 2013 came off the highs near Rs 5250 per barrel and currently trade at Rs 5198, down Rs 29 per barrel on the day with a huge 12% increase in open interest.
The Organization of Petroleum Exporting Countries (OPEC) left its oil supply and demand forecasts unchanged but maintained a cautious outlook on possible demand destruction from China and the euro zone in its monthly update. The OPEC said that world oil demand went up less than expected in the first quarter of the year. Demand is expected to grow by 800,000 barrels a day, the group said, but warned economic headwinds could see further downward revisions to this forecast.
While at the beginning of the year it looked as if further momentum was building up, the continued decline in the euro zone, the significant deceleration in the first quarter in some of the Asian economies and the recently acknowledged slow-down in Russia all have the potential to again push growth down slightly further, OPEC said.
The Asian equities were in a good touch today; rally on back of a persistent weakness in Japanese Yen. The Yen fell to a four and half year low against the US dollar today. Crude stayed supported amid these cues but flipped back the direction quite quickly in the European trades. MCX Crude oil futures for May 2013 came off the highs near Rs 5250 per barrel and currently trade at Rs 5198, down Rs 29 per barrel on the day with a huge 12% increase in open interest.
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