By Barbara Kollmeyer, MarketWatch
MADRID (MarketWatch) — Crude-oil futures stumbled Friday, after the International Energy Agency warned weak global growth could restrict demand for the commodity, while weaker-than-expected China trade data were also in focus.
Extending losses in Europe, crude for September delivery CLU2 -1.23% fell $1.04, or 1.1%, to $92.32 a barrel, extending losses seen during Asian trading hours. Oil rose a penny to end at $93.36 a barrel on the New York Mercantile Exchange Thursday, inspired by news Tropical Storm Ernesto had shuttered Mexico’s oil installations. That lifted hopes supply reports due next week will show another fall in U.S. inventories.
Sentiment was dampened Friday after the IEA said a “sluggish economic growth” picture could keep annual oil demand growth pinned down to 0.9 million barrels per day in 2012 and 0.8 mb/d in 2013. The IEA said global oil supply rose by 0.3 mb/d in July, on a monthly basis, to 90.7 mb/d.
A day prior, the Organization of Petroleum Exporting Countries warned of a “horizon full of turbulence” that could lead to a sharp fall in oil-demand growth in 2013. Its monthly oil market report showed July OPEC output falling to its lowest since February. Read: OPEC cuts production, warns of risks to oil demand
China backed fears its economy may be contracting at a quicker pace as it reported the country’s trade surplus flattened out in July, while imports rose 4.7%, both falling short of expectations. The news took a dent out of global equities and other commodities as it increased worries about the nation’s economic outlook.
A day prior, data showed retail sales and deflation for producer prices helped drive gains for markets, as it reinforced the view officials in Beijing will be pushed to ease monetary policy further.
Among other contracts, natural-gas futures NGU2 -1.70% , which rallied more than 5% at one point in Thursday’s New York session, fell a penny, or 0.5%, to $2.93 per million British thermal units. Natural-gas futures rallied briefly after an inventories report, though finished modestly higher in the prior session.
Elsewhere among energy contracts, September gasoline futures RBU2 -1.01% fell 3 cents, or 1.1%, to $2.97 a gallon.
September heating oil HOU2 -0.98% fell 3 cents, or 0.34%, to $2.97 a gallon.
Barbara Kollmeyer is an editor for MarketWatch in Madrid.
