29 May 2013 16:30 [Source: ICIS news]
LONDON (ICIS)--Crude oil futures weakened by more than $1.00/bbl on Wednesday as an economic report highlighted uneven progress in regional economies.
At 15:06 GMT, the front-month July NYMEX WTI contract touched an intra-day low at $94.01/bbl, a loss of $1.00/bbl compared to the previous settlement.
At the same time, the front-month July ICE Brent contract also fell to an intra-day low at $103.31/bbl, a loss of 92 cents/bbl compared to the settlement on Tuesday. Weakening oil prices were unsurprising on Wednesday given the glut of bearish news.
The International Monetary Fund (IMF) cut China’s economic growth forecast to 7.75% in 2013, down from its forecast at 8.00% earlier in the year.
And Organisation for Economic Co-operation and Development (OECD) think-tank also cut China’s 2013 growth forecast to 7.80%, down from 8.50% in March.
Adding to the bearish tone, the Paris-based OECD also cut its 2013 growth forecasts for the 17-nation eurozone down to a 0.60% contraction, down substantially from its forecast made six months ago which expected the eurozone to contract by just 0.10%.
On the upside, the monetary stimulus-led US and Japanese economies are expected to fare much better, but both economies could weaken if stimulus programmes, which are driving growth are scaled back.
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