Crude Extends Drop; US Stockpiles & OPEC in Spotlight
October 14, 2014 12:40 pm
Crude prices was seen extending losses after the International Energy Agency said the global oil demand for this year will expand at the slowest pace since 2009, while all eyes are on the Organization of the Petroleum Exporting Countries (OPEC) response to the falling trend.
Futures for the West Texas Intermediate (WTI) for November delivery traded 0.44% lower to $85.37 a barrel on the New York Mercantile Exchange at the time of writing. While the European benchmark Brent crude declined 0.68% to $88.81 a barrel on the ICE Futures Europe exchange based in London.
OPEC
The Organization of the Petroleum Exporting countries (OPEC), which supplies approximately 40% of the world’s crude, is expected to halt the fall in prices as its oil rich producers compete for market shares than stabilizing prices.
The crude falling trend prompted Venezuela and Russia to call for an emergency OPEC meeting, while oil ministers from Algeria, Saudi Arabia and Kuwait have refused to cut oil production. The OPEC group are scheduled to meet in Vienna on November 27.
“If we had a way to preserve the stability of prices or something that would bring it back to previous levels, we would not hesitate in that. There is no room for countries to reduce their production,” Kuwait’s Oil Minister Ali Al-Omair said on Monday.
Meanwhile, the IEA lowered its forecast for the global oil demand this year for the fourth month in a row. According to the Paris-based agency, oil consumption will increase by almost 650,000 barrels a day this year.
US Crude Supply Report
Oil traders are expecting two separate reports about the US oil inventories, one from the energy Information Administration due on Thursday and another from the American Petroleum Institute on Wednesday.
The reports are expected to show a rise in supply by 2.5 million barrels last week, while gasoline supplies are forecasted to ease by 1.55 million barrels and distillate supplies probably fell by 1.65 million barrels in the week ended October 10.
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Crude prices was seen extending losses after the International Energy Agency said the global oil demand for this year will expand at the slowest pace since 2009, while all eyes are on the Organization of the Petroleum Exporting Countries (OPEC) response to the falling trend.
Futures for the West Texas Intermediate (WTI) for November delivery traded 0.44% lower to $85.37 a barrel on the New York Mercantile Exchange at the time of writing. While the European benchmark Brent crude declined 0.68% to $88.81 a barrel on the ICE Futures Europe exchange based in London.
OPEC
The Organization of the Petroleum Exporting countries (OPEC), which supplies approximately 40% of the world’s crude, is expected to halt the fall in prices as its oil rich producers compete for market shares than stabilizing prices.
The crude falling trend prompted Venezuela and Russia to call for an emergency OPEC meeting, while oil ministers from Algeria, Saudi Arabia and Kuwait have refused to cut oil production. The OPEC group are scheduled to meet in Vienna on November 27.
“If we had a way to preserve the stability of prices or something that would bring it back to previous levels, we would not hesitate in that. There is no room for countries to reduce their production,” Kuwait’s Oil Minister Ali Al-Omair said on Monday.
Meanwhile, the IEA lowered its forecast for the global oil demand this year for the fourth month in a row. According to the Paris-based agency, oil consumption will increase by almost 650,000 barrels a day this year.
US Crude Supply Report
Oil traders are expecting two separate reports about the US oil inventories, one from the energy Information Administration due on Thursday and another from the American Petroleum Institute on Wednesday.
The reports are expected to show a rise in supply by 2.5 million barrels last week, while gasoline supplies are forecasted to ease by 1.55 million barrels and distillate supplies probably fell by 1.65 million barrels in the week ended October 10.
Visit www.hymarkets.com to find out more about our products and start trading today with only $50 using the latest trading technology today.
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