Oil lingers above US$84, market awaits economic data from USA

14-Oct-11

Oil prices continue to linger above US$84 in Asia, as the market awaits data on several economic indicators in USA that will indicate strength of the world's largest economy. Latest data about U.S. retail sales, consumer sentiment and business inventories is scheduled to be released on Friday. Crude for November delivery settled at US $84.1 on the Nymex. Oil fell by US$1.34 on the previous day on data from the US Energy Department that oil and natural gas supplies grew unexpectedly last week, suggesting persistent sluggish demand. Brent crude fell to US$111 on the ICE Futures Exchange in London. Earlier this week the International Energy Agency, OPEC, and the US Energy Information Administration all dropped forecasts for oil demand in 2012, assuming a slowdown in global economic growth. Earlier, OPEC chief insisted the market was well supplied with crude oil and that the world was not set for recession, despite cutting global demand forecasts for the third consecutive month on uncertainty in the global economy and weaker oil demand from China and India. In news from Europe, except Slovakia, the other 16 eurozone members have approved changes to revamp the 440 bln European Financial Stability Facility, set up in May 2010 after Greece was bailed out to save it from default.