Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Oil falls modestly in Asia despite bullish demand forecast

Published 12/12/2012, 08:39 PM
Updated 12/12/2012, 08:40 PM
NWSA
-
Investing.com - Oil futures slipped modestly in Asian trading Thursday despite news of more monetary easing from the Federal Reserve and an increased demand outlook from the International Energy Agency.

On the New York Mercantile Exchange in Asian trading Thursday light, sweet crude futures for January delivery fell 0.24% to USD86.56 per barrel. The contract traded as high as USD86.74 and as low as USD86.54 per barrel.

On Wednesday, the International Energy Agency boosted estimates for oil consumption in the fourth quarter and 2013 due to improved economic activity in China, the world’s second-largest oil consumer. IEA said international oil consumption will average 90.5 million barrels a day in the current quarter. That is about 0.5% higher than the agency’s previous forecast.

For 2013, IEA expects global consumption of 90.5 million barrels per day. That forecast is up by 110,000 barrels per day from the prior estimate. IEA expects China to consume an average of 9.9 million barrels per day this quarter and an average of 9.8 million barrels per day next year.

Regarding oil production, the Organization of Petroleum Exporting Countries met in Vienna Wednesday. As many traders expected, the cartel did not alter its current production quota of 30 million barrels per day. OPEC member states account for 40% of global oil output.

The U.S. Energy Information Administration said oil inventories in the world’s largest oil-consuming nation jumped by 800,000 barrels last week to 373 million barrels. Analysts were expecting a decline in the weekly inventory data.

Futures rose 1.1% to USD86.77 in the U.S. session after the Federal Reserve said it purchase USD45 billion per month in short-term Treasuries for long-term U.S. government debt when Operation Twist expires at the end of this month.

Elsewhere, Brent futures for February delivery fell 0.3% to USD107.75 per barrel.



Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.