10 Jul 2015
Oil pared gains after IEA forecasts
FXStreet (Mumbai) - Oil prices at both the sides of the Atlantic pared gains after the International Energy Agency (IEA) said the oil market is “massively oversupplied”.
WTI Crude prices fell from the high of USD 53.51/barrel to trade at USD 52.86/barrel, threatening to fall into losses. On similar lines, Brent Crude prices fell from the high of USD 59.66/barrel to trade at USD 58.85/barrel.
Prices were buoyed earlier today after Shanghai Composite index rallied for the second day to clock 4% gains. The gains were further supported by optimism surrounding the Greek debt deal. However, prices pared gains after the IEA said “global oil demand growth will slow next year to 1.2 million barrels a day, reaching 95.2 million a day, down from an expansion of 1.4 million a day this year.”
Crude prices have managed to stay flat to positive despite bearish IEA forecasts mainly due to a 1% fall in the USD index.
WTI Crude prices fell from the high of USD 53.51/barrel to trade at USD 52.86/barrel, threatening to fall into losses. On similar lines, Brent Crude prices fell from the high of USD 59.66/barrel to trade at USD 58.85/barrel.
Prices were buoyed earlier today after Shanghai Composite index rallied for the second day to clock 4% gains. The gains were further supported by optimism surrounding the Greek debt deal. However, prices pared gains after the IEA said “global oil demand growth will slow next year to 1.2 million barrels a day, reaching 95.2 million a day, down from an expansion of 1.4 million a day this year.”
Crude prices have managed to stay flat to positive despite bearish IEA forecasts mainly due to a 1% fall in the USD index.