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 Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Energy

Corvus Gains Support from WINN Initiative

Corvus Energy announced today the award of $1.3 million in repayable assistance from the Western Innovation (WINN) Initiative for its project to further develop the Corvus Energy Storage System.

Ocean Rig, Petrobras Agree to $1.1b Drill Ships Lease

Cyprus-based Ocean Rig UDW Inc said on Monday that it signed a $1.1 billion three-year contract with Brazil's state-run oil company, Petroleo Brasileiro SA, to

GAO: Ending Crude Export Ban Could Ease 'Price at the Pump'

As the energy profile of the U.S. continues to improve and evolve daily, fresh debate in favor of exporting oil and gas products -- which would have a significant impact on the U.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Navigation Offshore Oil Pipelines Ship Repair Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | terms and conditions | 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: 0.1222 sec (8 req/sec)