Wednesday, 12 November 2014

OPEC Hints At Weak Oil Demand Next Year

Organization of Petroleum Exporting countries (OPEC) said demand for its oil would fall next year. In its monthly report, the cartel said global demand for oil from OPEC will drop to 29.20 million barrels per day next year, almost 1 million bpd less than it currently produces.

The announcement further hit oil prices as Brent crude traded around $80 a barrel on Thursday, near its lowest since 2010. Brent crude for December delivery, which expires on Thursday, had shed another 38 cents to $80.00 a barrel.

US crude for December delivery was down 16 cents at $77.02 a barrel. The spread between the two benchmarks has narrowed more than $3 in the past week. Brent’s premium to US crude narrowed to $2.98 on Thursday from as much as $6.42 last week.

US crude stocks fell 1.5 million barrels last week to 373 million, compared with analysts’ expectations of an increase of 800,000 barrels, data from industry group the American Petroleum Institute showed.

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