Crude prices mixed on news of reduced demand forecasts amid positive US numbers

18-Mar-13

Brent North Sea crude for delivery in May dipped to US$109.90, while oil on the Nymex gained by over two dollars to US$93.4. Weighing on prices is demand forecasts of the three leading oil agencies- The International Energy Agency this week eased its global forecast for growth in world oil demand for the second straight month, underscoring the effects of uncertainty from the US budget talks, sluggish Chinese business activity and unemployment in Europe. Paris-based IEA, which is the oil monitoring and policy arm of the Organisation for Economic Cooperation and Development (OECD), estimated that demand for oil would total 90.6 mln bpd this year, a cut of 60,000 barrels from its forecast in February. The Organization of Petroleum Exporting Countries (OPEC) on Tuesday stood pat on its 2013 crude demand forecast, but raised its outlook for production growth by non-OPEC suppliers by 11% to 1 million bpd. It expects the growth by non-OPEC suppliers to come mainly from North America. The cartel, which accounts for around 35% of global supply, expects global demand of 89.7 mln bpd in 2013, up 0.8 million from 2012.