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Oil falls following EIA forecast

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Investing.com - Oil futures are trading lower during Wednesday's Asian session after the U.S. Energy Information Administration pared its 2013 and 2014 global demand forecasts.

On the New York Mercantile Exchange, light, sweet crude futures for May delivery fell 0.23% to USD93.98 per barrel in Asian trading Wednesday after settling up 0.91% at USD94.21 a barrel on Tuesday in the U.S.

EIA said global oil use will rise by 1 million barrels per day 90 million barrels per day this year, but that is 140,000 barrels a day below EIA's prior forecast. EIA sees 2014 oil demand rising by 1.3 million barrels per day, but that is 200,000 barrels a day less than the EIA's March forecast.

The group said Chinese oil demand will rise by 450,000 barrels a day this year, to 10.68 million barrels a day this year following demand growth of 380,000 barrels a day in 2012. China is the second-largest oil consumer in the world behind the U.S.

EIA said China's oil demand will jump 510,000 a barrels a day to 11.19 million barrels a day next year. Following a 16-year low seen last year, EIA sees U.S. consumption rising slightly to 18.62 million barrels per day in 2013.

In 2014, EIA sees countries outside the Organization for Economic Cooperation and Development topping non-OECD demand for the first time.

Production by countries outside the Organization of Petroleum Exporting Countries is expected to increase by 1.06 million barrels a day this year and by 1.58 million barrels a day in 2014, according to EIA. OPEC's 12 member nations account for about 40 percent of global oil output.

Elsewhere, Brent crude for May delivery rose 0.05% to USD106.34 per barrel on the ICE Futures Exchange.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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