The lowered forecasts fed concerns over the outlook for energy demand as traders mulled over what members of the Organization of the Petroleum Exporting Countries may decide to do with output targets at their meeting in Vienna on Friday.
Crude for July delivery is trading up 9 cents at $93.22 per barrel on the New York Mercantile Exchange. It fell $1.88, or 2%, to settle at $93.13 a barrel.
Separately, the Organization for Economic Cooperation and Development warned that when the U.S. Federal Reserve and others start tapering their monetary-easing programs, that will likely cause spikes in government-bond yields and put growth in the global economy at risk. The OECD said the U.S. economy is still expected to grow, though at a slightly lower rate than previously thought. It predicts a rate of 1.9% in 2013, down from an earlier estimate of 2.0%.
After the Nymex session ended Wednesday, the API reported across-the-board increases in petroleum stockpiles. Crude supplies jumped 4.4 million barrels, while a Platts survey of analysts showed a forecast for a 1.5 million-barrel decline.
The Energy Information Administration will follow with its own supply data Thursday at 11 a.m. Eastern. The supply figures for oil come before members of OPEC review production targets at their meeting on Friday. OPEC members are expected to maintain their supply target of about 30 million barrels a day.
In a note dated Tuesday, Bank of America Merrill Lynch cut its global oil demand assumptions and lowered its Brent price forecasts. It expects global oil demand to grow by 800,000 barrels a day in 2013, down from a previous forecast of 950,000 barrels because of slightly weaker-than-expected consumption in Europe and China. The bank also reduced its Brent forecast to $103 in the second half of 2013, from $111 prior.
MCX June crude oil futures may open today’s session near Rs 5270 levels with support around Rs 5230 levels and resistance near Rs 5300 levels.
Source by Commodity Insights
No comments:
Post a Comment