Investing.com - Crude oil futures fell in Asian trading on Wednesday after the International Energy Agency trimmed its demand forecast for the fourth quarter of this year.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in January traded at USD85.61 a barrel on Wednesday, down 0.27%, off from a session high of USD85.83 and up from an earlier session low of USD85.59.
Earlier, the International Energy Agency cut its global oil consumption forecast for the fourth quarter of this year by 290,000 barrels a day to 90.1 million barrels a day due mainly to reduced demand in crisis-weary Europe.
Hurricane Sandy, which morphed into a hybrid monster of a weather system and roared across the northeastern U.S. last October, will also cut into demand.
In Europe, hopes that eurozone and multilateral policymakers will free up bailout money for Greece continue to build though no official announcements have been public yet, which kept investors away from oil, a growth-sensitive commodity on Wednesday.
Elsewhere in Europe, the ZEW Centre for Economic Research reported earlier that its index of German economic sentiment fell to -15.7 in November from October’s reading of -11.5.
Analysts had expected the index come in at -9.8 this month.
The report mentioned that "recessionary developments" in the eurozone should dampen German growth in the next six months, which helped to depress energy prices as well.
Fears that the U.S. risks falling into an avoidable recession continued to cast doubts on investors Wednesday.
At the end of this year, the Bush-era tax cuts and other tax benefits expire at the same time pre-programmed cuts to government spending are scheduled to take effect, a combination known as a fiscal cliff that could push the country into recession if left unaddressed by Congress.
Lawmakers have expressed confidence that they'll avoid partisan bickering and cut a deal, but until an announcement hits the wire, investors will remain wary.
Even if a compromise steers the country away from recession, a deal could still crimp growth somewhat, which would be bearish for crude.
On the ICE Futures Exchange, Brent oil futures for January delivery were down 0.12% and trading at USD106.94 a barrel, up USD21.33 from its U.S. counterpart.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in January traded at USD85.61 a barrel on Wednesday, down 0.27%, off from a session high of USD85.83 and up from an earlier session low of USD85.59.
Earlier, the International Energy Agency cut its global oil consumption forecast for the fourth quarter of this year by 290,000 barrels a day to 90.1 million barrels a day due mainly to reduced demand in crisis-weary Europe.
Hurricane Sandy, which morphed into a hybrid monster of a weather system and roared across the northeastern U.S. last October, will also cut into demand.
In Europe, hopes that eurozone and multilateral policymakers will free up bailout money for Greece continue to build though no official announcements have been public yet, which kept investors away from oil, a growth-sensitive commodity on Wednesday.
Elsewhere in Europe, the ZEW Centre for Economic Research reported earlier that its index of German economic sentiment fell to -15.7 in November from October’s reading of -11.5.
Analysts had expected the index come in at -9.8 this month.
The report mentioned that "recessionary developments" in the eurozone should dampen German growth in the next six months, which helped to depress energy prices as well.
Fears that the U.S. risks falling into an avoidable recession continued to cast doubts on investors Wednesday.
At the end of this year, the Bush-era tax cuts and other tax benefits expire at the same time pre-programmed cuts to government spending are scheduled to take effect, a combination known as a fiscal cliff that could push the country into recession if left unaddressed by Congress.
Lawmakers have expressed confidence that they'll avoid partisan bickering and cut a deal, but until an announcement hits the wire, investors will remain wary.
Even if a compromise steers the country away from recession, a deal could still crimp growth somewhat, which would be bearish for crude.
On the ICE Futures Exchange, Brent oil futures for January delivery were down 0.12% and trading at USD106.94 a barrel, up USD21.33 from its U.S. counterpart.