What's Moving the Oil Markets?
•IPE Brent futures in London firmed in thin trading ahead
of the US stock data report expected to show a draw in commercial crude stocks
later Wednesday. "The rise this morning is a slight continuation from Tuesday's
session with market anticipating a draw in crude stocks," a trader said.
•Fear over inflation and high commodity prices; impact on economic growth and
crude oil demand sparked a retreat in the price of global commodities.
•Market players see little activity occurring, as there is no fresh news, until
the US Energy Information Agency and the American Petroleum Institute release
their weekly stock data at 1530 London time. "It's very quiet this morning. Most
people are waiting around for the US data to come out and on top of that it's a
bank holiday in Norway so there are fewer North Sea players," a London-based
broker said.
•In other news, OPEC has cut its forecast for world oil demand growth this year
on Wednesday, saying that high prices were contributing to a slowdown in
incremental demand in developed countries. OPEC now expects world oil demand to
average 84.6 million b/d in 2006, up 1.38 million b/d from 83.22 million b/d in
2005. The cartel had previously been predicting demand growth of 1.43 million
b/d this year.
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