Oil plunges to $98 on China economy sap, rising US supplies
March 13, 2014 8:56 am
Oil price dived to $98 per barrel on Wednesday, as the probability of a more profound economic deceleration in China implied anticipations of weaker demand and a report exhibited an increase in US oil supplies.
Benchmark US crude to be delivered in April dipped $2.04 or 2%, at $97.99 per barrel in New York, the first close below $100 in a month. Brent crude, used to settle prices for international varieties of crude, fell 53 cents to $108.02 on the ICE Futures exchange in London.
China’s drop in exports in February ignited anxieties of additional slowdown in the world’s second largest economy, which would decline demand for energy. China’s 7.7% economic progression last year was the lowest point in two decades.
Meanwhile, the US Energy Department said US crude oil supplies advanced by 6.2 million barrels last week, way above the gain of 2.3 million barrels postulated by analysts polled by Platts, McGraw-Hill Companies’ energy information division.
Oil prices have been decreasing since last week, when they fired on worries Russia’s military penetration into the Crimean Peninsula might result to US and European sanctions on one of the world’s biggest energy suppliers.
Providing some back up to prices, the Organization of Petroleum Exporting Countries, which chronicles for about one third of the world’s oil production, elevated slightly its prediction for worldwide crude demand in 2014.
In its monthly oil market report released on Wednesday, OPEC assumed the world will exhaust 91.1 million barrels a day this year, 1.14 million barrels more than in 2013 and 50,000 barrels above its previous forecast released in February.
The material has been provided by InstaForex Company – www.instaforex.com
Oil price dived to $98 per barrel on Wednesday, as the probability of a more profound economic deceleration in China implied anticipations of weaker demand and a report exhibited an increase in US oil supplies.
Benchmark US crude to be delivered in April dipped $2.04 or 2%, at $97.99 per barrel in New York, the first close below $100 in a month. Brent crude, used to settle prices for international varieties of crude, fell 53 cents to $108.02 on the ICE Futures exchange in London.
China’s drop in exports in February ignited anxieties of additional slowdown in the world’s second largest economy, which would decline demand for energy. China’s 7.7% economic progression last year was the lowest point in two decades.
Meanwhile, the US Energy Department said US crude oil supplies advanced by 6.2 million barrels last week, way above the gain of 2.3 million barrels postulated by analysts polled by Platts, McGraw-Hill Companies’ energy information division.
Oil prices have been decreasing since last week, when they fired on worries Russia’s military penetration into the Crimean Peninsula might result to US and European sanctions on one of the world’s biggest energy suppliers.
Providing some back up to prices, the Organization of Petroleum Exporting Countries, which chronicles for about one third of the world’s oil production, elevated slightly its prediction for worldwide crude demand in 2014.
In its monthly oil market report released on Wednesday, OPEC assumed the world will exhaust 91.1 million barrels a day this year, 1.14 million barrels more than in 2013 and 50,000 barrels above its previous forecast released in February.
The material has been provided by InstaForex Company – www.instaforex.com
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