New York’s West Texas Intermediate (WTI) crude futures ended negative on October 13, after the Organization of the Petroleum Exporting Countries (OPEC) cut global oil demand forecasts this year. While investors are keeping an eye on the US crude inventories report, which is scheduled to be released today.
- WTI crude oil contract for delivery in November It was down 20 cents, or 0.3%, at $80.44 a barrel.
- Brent crude oil contract (BRENT) for delivery in December. It was down 24 cents, or 0.3%, at $83.18 a barrel.
Crude oil futures fell after OPEC lowered its forecasts for global oil demand this year. It is expected to increase by only 5.8 million barrels per day. It was originally expected to increase by 5.96 million barrels per day. Because the actual data in the first 3 quarters of this year came out lower than expected. Although OPEC still believes oil demand in the current quarter will be strong.
Trading conditions in oil markets were also under pressure as the International Monetary Fund (IMF) lowered its forecast for global economic growth this year to 5.9 percent from the previous estimate of 6%. It identifies supply chain problems that affect the global economic recovery. including the spread of COVID-19 that are expected to affect the economic outlook in many countries especially low-income developing countries.
Investors are keeping an eye on the crude stock report that the U.S. Energy Information Administration (EIA) is due to release today. While analysts in a poll of S&P Global Platts predicted that U.S. crude inventories are down 500,000 barrels for the week ending Oct. 8, while gasoline inventories are expected to drop 400,000 barrels and distillates are down 800,000 barrels.
By InfoQuest News Agency (14 Oct. 64)
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