What's Moving the Oil Markets?

•Global crude futures were weaker ahead of the US inventory data release and OPEC meeting on Thursday, on the back of fund selling late Tuesday and early Wednesday, brokers said. "Hedge Funds have sold into the markets, both late on Tuesday and this morning as well. Otherwise it's pretty quiet and eyes are focusing on the US data," a London-based broker said.

•Market players added that they think funds have decided that demand is waning and there is less reason to be bullish about crude prices. Proof of demand being less than bullish to prices came in the form of the latest report from the International Energy Agency. In its latest monthly report, the IEA left its forecasts for world oil demand growth in 2006 and 2007 unchanged at +1.1% in 2006 (84.5 million b/d) and +1.7% in 2007 (85.9 million b/d), as minor downward adjustments in OECD countries were offset by upward revisions in non-OECD countries.

•Analysts surveyed by Platts on Tuesday said they expect a 1.6 million barrel decline in commercial crude stocks.

Updated: 12/13/07