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Daily Oil Summary

11 May 2012 20:36:55 | esgm

The front-month June ICE Brent crude oil contract opened on Friday in negative territory again, and it moved sideways during the early hours until Europe opened its doors for business. Instead of climbing which it did in previous sessions, on Friday, it quickly fell to hit the intra-day low.

This was likely to have been caused by several bearish news items. Chinese economic data showed April industrial output and retail sales in China were both below forecasts, raising fears of further slow down in the world's second largest consumer of crude oil. More importantly, the populous-nation reported its first drop in implied oil demand in three years.

In Europe, the European Financial Stability Facility was heard to have withheld €1bn of the €5.2bn payment due on Thursday for Greece until its political parties agree that they will stick with the terms and conditions, which were agreed with the EU, European Central Bank and the International Monetary Fund.

While ICE Brent touched an intra-day low, NYMEX West Texas Intermediate (WTI) was little changed trading sideways during the entire time. By mid-afternoon after a short-lived spike, prices weakened a little before recuperating all the losses to trade a handful of cents above Thursday's close triggered by an upbeat report from the US showing consumer sentiment rising to four-year highs. After both contracts touched an intra-day high, they both weakened, Brent managed to move sideways, trading just marginally below Thursday's settlement before plummeting, while WTI moved downwards slowly and steadily.

June Brent closed the day down 47 cents/bbl at $112.26/bbl, having traded a range between $111.40/bbl and $112.80/bbl.

June WTI closed the day down 95 cents/bbl at $96.13/bbl, having traded a range between $95.61/bbl and $97.20/bbl.

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