17 April 2013 13:33 [Source: ICIS news]
LONDON (ICIS)--Crude oil futures weakened by more than $1.00/bbl on Wednesday, pressured by demand growth concerns, weaker stock markets and falling construction output in Europe.
By 11:43 GMT, the front-month May NYMEX WTI contract touched an intra-day low at $87.31/bbl, a loss of $1.41/bbl compared to the close on Tuesday. The contract then edged higher to trade around $87.50/bbl.
At the same time the front-month June ICE Brent contract was trading around $98.90/bbl, having touched an intra-day low at $98.80/bbl – a loss of $1.11/bbl compared to the previous day’s settlement.
Construction output fell by 0.8% in the eurozone in February month on month, according to a press release issued by statistics agency Eurostat on Wednesday.
EU construction output saw a contraction of 0.4% during the same period.
Stock markets were showing a mixed picture on Wednesday, as some stocks indexes settled in negative territory – such as China’s Shanghai stock exchange and Hong Kong’s Hang Seng Index, however, Japan’s Nikkei 225 gained.
In Europe the UK’s FTSE 100, Germany’s DAX and France’s CAC 40 were all trading below Tuesday’s closing values.
Oil demand growth in 2013 was downgraded recently by both oil cartel OPEC and the International Energy Agency.
Both attributed weaker demand growth to ongoing political and economic challenges facing Europe and in particular the eurozone.
($1 = €0.76)
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