Crude
dropped to the lowest in more than 12-years in New York after the
International Energy Agency said the global market could “drown in
oversupply.”
West
Texas Intermediate futures fell 3.3 percent. The IEA cut 2016 estimates
for global oil demand as China’s economic growth weakens, and raised
forecasts for output outside the Organization of Petroleum Exporting
Countries. The removal of restrictions on Iranian crude sales is seen
prolonging the supply glut. Brent futures rebounded as data showed
Chinese growth was in line with government targets.
Oil
is down 23 percent this year amid volatility in Chinese markets and an
expected surge in Iranian exports. The International Monetary Fund cut
its world growth outlook for 2016 to 3.4 percent from 3.6 percent as the
commodities slump and political gridlock push Brazil deeper into
recession, plunging oil prices hobble Middle East crude producers, and
the rising dollar curbs U.S. prospects.
WTI
for February delivery, which expires Wednesday, slipped 96 cents to
close at $28.46 a barrel on the New York Mercantile Exchange. It was the
lowest settlement since September 2003. The more-active March future
decreased 82 cents to $29.57. Monday’s transactions were booked with
Tuesday’s because of the Martin Luther King Jr. holiday. Total volume
traded was 68 percent higher than the 100-day average at 2:45 p.m.
Brent
for March settlement climbed 21 cents, or 0.7 percent, to end the
session at $28.76 a barrel on the London-based ICE Futures Europe
exchange. The contract fell 1.4 percent to $28.55 on Monday, the lowest
close since December 2003. Brent closed at an 81-cent discount to March
WTI.
Source : bloomberg
0 komentar :
Post a Comment