What's Moving the Oil Markets?

What's Moving the Oil Markets?

•Global crude futures fell on Friday, retracting from strong gains in the previous two days as as the latest International Energy Agency report showed a reduction in projected global oil demand and an increase in non-OPEC supply. The Paris-based IEA, an advisor to major oil consuming countries in the OECD, reduced its estimates of world oil demand this year to average 84.49 million b/d, down 80,000 b/d from a previous estimate of 84.57 million b/d, it said in its latest monthly oil market report.

•During the past two trading sessions, global benchmark crude prices rose around $2/bbl, primarily on the back of a larger than expected draw in US distillate stocks. However, market players said a resistance level of around $61.35/barrel had failed to be broken through and prices were still trading in a range. "We have a very strong base at $57 and if we were to break up through the $62 to $62.50 resistance then prices could easily rise by $3 to $4," a trader said.

•Futures traders also cited the ICE gasoil futures expiry for November delivery at 1200 GMT as a reason for the drop in prices.

Updated: 11/10/06

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