16-09-2014, 07:47 AM
Brent crude hits two-year low
AFP SEPTEMBER 16, 2014 6:45AM
Global oil prices have finished mixed after weak US and Chinese industrial data clouded the outlook for demand in the world's largest economies.
The US benchmark futures contract, West Texas Intermediate for delivery in October, rose US65c to finish at $US92.92 a barrel, rebounding a bit from recent steep losses. On Friday WTI had closed at its lowest since January.
In London, on the final day of its October contract, Brent North Sea crude sank US46c to settle at $US96.65 a barrel, its lowest level since late June 2012.
The oil market on both sides of the Atlantic was under pressure earlier in the day after China reported over the weekend that industrial production stuttered in August, with growth dropping sharply to 6.9 per cent, the slowest pace in more than five years.
The data added to worries about weakening growth in the world's number two economy even after the Chinese government's stimulus measures.
"Less-than-expected Chinese growth translates into lower demand for oil," Andy Lipow, of Lipow Oil Associates, said.
The Chinese data was followed Monday by official data showing an unexpected fall in US industrial output in August after six months of gains.
Mr Lipow said the WTI rebound was not due to any particular factor but came amid "historically high utilisation of oil refineries for this time of the year, and that creates demand for oil".
Meanwhile, traders mulled an OECD downgrade of economic growth forecasts for most of the major advanced economies, particularly highlighting the sluggish eurozone recovery as "the most worrying feature of the projections."
The Organization for Economic Cooperation and Development slashed its 2014 growth forecast for the 18-nation eurozone to 0.8 per cent from its May estimate of 1.2 per cent.
For Tim Evans of Citi Futures, the WTI uptick suggested that the market had reached levels "where selling may be drying up, and bargain-hunting emerges".
AFP SEPTEMBER 16, 2014 6:45AM
Global oil prices have finished mixed after weak US and Chinese industrial data clouded the outlook for demand in the world's largest economies.
The US benchmark futures contract, West Texas Intermediate for delivery in October, rose US65c to finish at $US92.92 a barrel, rebounding a bit from recent steep losses. On Friday WTI had closed at its lowest since January.
In London, on the final day of its October contract, Brent North Sea crude sank US46c to settle at $US96.65 a barrel, its lowest level since late June 2012.
The oil market on both sides of the Atlantic was under pressure earlier in the day after China reported over the weekend that industrial production stuttered in August, with growth dropping sharply to 6.9 per cent, the slowest pace in more than five years.
The data added to worries about weakening growth in the world's number two economy even after the Chinese government's stimulus measures.
"Less-than-expected Chinese growth translates into lower demand for oil," Andy Lipow, of Lipow Oil Associates, said.
The Chinese data was followed Monday by official data showing an unexpected fall in US industrial output in August after six months of gains.
Mr Lipow said the WTI rebound was not due to any particular factor but came amid "historically high utilisation of oil refineries for this time of the year, and that creates demand for oil".
Meanwhile, traders mulled an OECD downgrade of economic growth forecasts for most of the major advanced economies, particularly highlighting the sluggish eurozone recovery as "the most worrying feature of the projections."
The Organization for Economic Cooperation and Development slashed its 2014 growth forecast for the 18-nation eurozone to 0.8 per cent from its May estimate of 1.2 per cent.
For Tim Evans of Citi Futures, the WTI uptick suggested that the market had reached levels "where selling may be drying up, and bargain-hunting emerges".