Crude futures fall on US, Europe economy worries, more supply

13 November 2012 12:50  [Source: ICIS news]

SINGAPORE (ICIS)--Crude futures declined on Tuesday, falling by more than $1/bbl at one stage, amid weakness in the US and European economies and a well supplied market.

At 12:34 GMT, December Brent crude on London’s ICE futures exchange was trading at $108.56/bbl, down by 51 cents/bbl from the previous close. Earlier, the North Sea benchmark fell to a session low of $107.50/bbl, down by $1.57/bbl.

December NYMEX light sweet crude futures (WTI) were trading at $85.32/bbl, down by 25 cents/bbl from the previous close. Earlier, the US benchmark declined to a session low of $84.58/bbl, down by 99 cents/bbl.

In its latest monthly report issued on Tuesday, the International Energy Agency (IEA) said  that “non-OPEC production rebounded by 840,000 bbl/day in October to 53.4m bbl/day after seasonal maintenance and weather disrupted output in September”. The IEA also said that exports from Iran had also increased in October to 1.3m bbl/day from 1m bbl/day in September.

Eurozone members have extended the deadline for Greece to reach targets to cut its deficit from 2014 to 2016. However, eurozone finance ministers have delayed a decision to release the next tranche of €31.5bn ($40.4bn) of aid from the International Monetary Fund (IMF), the EU and the European Central Bank (ECB) until a meeting on 20 November.

US lawmakers are set to start talks to reach agreement on plans to tackle the US budget amid fears that the large tax rises and spending cuts due to be implemented in January could push the world’s largest economy into recession.

($1 = €0.79)

By: James Dennis
+65 6780 4327

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