ICE Brent weakens on IEA demand forecast

12 October 2012 12:50  [Source: ICIS news]

LONDON (ICIS)--ICE Brent crude oil futures weakened by more than $1.00/bbl on Friday after the International Energy Agency slashed its oil demand growth forecast for 2012.

By 10:53 GMT, the front-month November ICE Brent contract fell to an intra-day low at $114.23/bbl, a loss of $1.48/bbl compared with the settlement on Thursday. The contract then edged higher to trade around $115.00/bbl.

At the same time the front-month November NYMEX WTI contract was trading around $92.10/bbl, having touched an intra-day low at $91.65/bbl, a loss of 42 cents/bbl compared with the close on Thursday.

The IEA reduced its global oil demand growth forecast for 2012 by 700,000 bbl/day in a report issued on Friday. It expects global demand this year to be 89.7m bbl/day. The agency maintained its global oil demand growth figure for 2013 at 800,000 bbl/day. It expects global demand in 2013 to be 90.5m bbl/day.

It said it expects the oil market to become “somewhat less tight” over the medium term due to more balanced supply-and-demand fundamentals combined with spare OPEC production capacity.

By: Kawai Wong
+44 20 8652 3214

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