Investing.com – Crude oil futures erased losses on Monday, rebounding from a four-day low as risk aversion eased after International Monetary Fund officials said Greece was likely to receive its next tranche of aid later this month.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in October traded at USD87.54 a barrel during U.S. morning trade, gaining 0.35%.
It earlier fell as much as 2.55% to trade at USD85.02 a barrel, the lowest price since September 6.
Fears over an imminent Greece debt default eased after two senior International Monetary Fund officials said that Greece would receive the next tranche of bailout loans later this month.
The announcement came after Greece’s government said Sunday that it will impose a new property tax to cover a EUR2 billion gap in its budget targets this year.
However, concerns over the global demand outlook limited any significant gains for crude.
Earlier in the day, the Organization of Petroleum Exporting Countries lowered its forecast for global oil demand for 2011 and 2012, citing slowing economic growth in developed nations and a weak U.S. driving season.
In its monthly report, OPEC said that world oil demand for the remainder of 2011 was expected to total 87.99 million barrels per day, down from a previous forecast of 88.14 million barrels.
"Uncertainties in the oil market are increasing at a time when the recovery of the global economy is losing momentum and is becoming less evident," OPEC said.
For 2012, global demand was expected to average 89.26 million barrels per day, compared to the organization’s August estimate of 89.44 million.
It cited "considerable uncertainty in total world economy in 2012" and warned that a U.S. recession would lower demand even further.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for October delivery dropped 1% to trade at USD109.83 a barrel, up USD22.29 a barrel on its U.S. counterpart.
OPEC forecast Libyan oil production to reach one million barrels per day, around two-thirds of pre-war levels, within six months.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in October traded at USD87.54 a barrel during U.S. morning trade, gaining 0.35%.
It earlier fell as much as 2.55% to trade at USD85.02 a barrel, the lowest price since September 6.
Fears over an imminent Greece debt default eased after two senior International Monetary Fund officials said that Greece would receive the next tranche of bailout loans later this month.
The announcement came after Greece’s government said Sunday that it will impose a new property tax to cover a EUR2 billion gap in its budget targets this year.
However, concerns over the global demand outlook limited any significant gains for crude.
Earlier in the day, the Organization of Petroleum Exporting Countries lowered its forecast for global oil demand for 2011 and 2012, citing slowing economic growth in developed nations and a weak U.S. driving season.
In its monthly report, OPEC said that world oil demand for the remainder of 2011 was expected to total 87.99 million barrels per day, down from a previous forecast of 88.14 million barrels.
"Uncertainties in the oil market are increasing at a time when the recovery of the global economy is losing momentum and is becoming less evident," OPEC said.
For 2012, global demand was expected to average 89.26 million barrels per day, compared to the organization’s August estimate of 89.44 million.
It cited "considerable uncertainty in total world economy in 2012" and warned that a U.S. recession would lower demand even further.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for October delivery dropped 1% to trade at USD109.83 a barrel, up USD22.29 a barrel on its U.S. counterpart.
OPEC forecast Libyan oil production to reach one million barrels per day, around two-thirds of pre-war levels, within six months.