Oil Prices Slip As Demand Drops

Monday, May 14, 2001
NYMEX crude oil futures slipped early Friday (May 11) as a report by the West's energy watchdog that world crude demand had been slower than expected so far this year fueled fears of lower consumption ahead. In choppy trade, June crude fell 22 cents to $28.30 a barrel, eating into Thursday's 29-cent advance. It subsequently recouped most of the early losses, showing a two-cent loss at $28.50 by 10:24 a.m. (1424 GMT). June Brent crude in London extended losses after the NYMEX opening, then trimmed the loss to 11 cents at $28.37 a barrel. In its monthly oil market report, the Paris-based International Energy Agency (IEA) said it had lowered its forecast for world oil demand growth by a further 300,000 bpd to just 1.02 million bpd. The report sliced 160,000 bpd from the IEA's forecast for world oil demand in 2001 to 76.54 million. In revising its forecast, IEA cited "lower-than-expected first-quarter deliveries and the effect of persistently high prices in a context of slowing economic growth." Gasoline futures, the market's main bullish engine of late, retreated on early selling, with no news from refineries to stoke buying. June gasoline slid 1.26 cents to $1.0615 a gallon, extending overnight losses of 0.56 cent, later edging back to $1.0650, down 0.91 cent. Traders said the market was looking to take a pause from recent rallies spurred by concerns over gasoline supply ahead of the summer driving season and signals that OPEC will not relax supply curbs when its ministers meet in June. Oil traders are closely watching OPEC's compliance with production cuts to see if the cartel can keep production discipline in its bid to stabilize oil prices. OPEC ministers have said there is no need to raise production in June but that they might open up the taps later if market demand warrants such a move. But the cartel could come under pressure to lift supplies from the United States, the world's biggest oil consumer. The Bush administration appeared to reverse course on Thursday, blaming OPEC for the suffering of U.S. consumers who are paying record high gasoline prices at the pump. Energy Secretary Spencer Abraham said OPEC was at fault for high fuel prices, contradicting comments made earlier in the week by Vice President Dick Cheney that a shortage of U.S. refining capacity, not OPEC, had caused gasoline prices to soar. - (Reuters)

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter June 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Offshore

Norwegian Unions Say 755 O&G Workers Could Strike

About 755 Norwegian workers on seven oil and gas fields could go on strike from Saturday, hitting output from western Europe's top producer, if a new wage deal is not agreed before a Friday deadline,

POSH Bags Shell FLNG Contract

Singapore’s offshore marine services provider PACC Offshore Services Holdings Ltd. (POSH) has been awarded a contract to support Shell’s Prelude floating liquefied

US Oil Drillers Cut Rigs after 3 Weeks of Additions

U.S. oil drillers cut rigs this week for a 20th week this year after three weeks of additions, according to a closely followed report on Friday, as crude prices

Energy

China's Robust Crude Oil Imports Mask Changing Fuel Dynamics

China is a bigger concern for crude oil and products markets than the current worries about the British vote to leave the European Union.   While the news media

EU to Accept Antitrust Offer from Maersk, MSC, 13 Others

World No.1 container liner Maersk, Swiss peer MSC and 13 other shipping firms are set to escape possible penalties as EU antitrust regulators plan to accept their offer to end a five-year probe,

Charting the Shift of Oceanic Boundary Currents

Global warming results in fundamental changes to important ocean currents. As scientists from the Alfred-Wegener-Institute show in a new study, wind-driven subtropical

 
 
Maritime Careers / Shipboard Positions Maritime Standards Navigation Pipelines Port Authority Salvage Ship Repair Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0857 sec (12 req/sec)