By Michael Kitchen and Sara Sjolin, MarketWatch
LONDON (MarketWatch) — Oil futures shrugged off solid gains for Asian and European stocks to trade lower on Thursday after several institutions cut their forecasts for demand growth.
Benchmark U.S. crude oil for May delivery CLK3 -0.14% lost 17 cents, or 0.2%, to trade at $94.48 a barrel, giving back some of its 44-cent gain during Wednesday’s New York Mercantile Exchange session.
Likewise, rival London-traded benchmark Brent crude saw its May contract UK:LCOK3 +0.02% retreat another 20 cents, or 0.2%, to $105.58 a barrel.
Thursday’s losses came as the International Energy Agency cut its outlook for global oil-demand growth to 795,000 barrels a day from a previous forecast of 820,000 barrels a day, adding to existing worries that demand is fading.
The forecast cut reflected weak demand from industrialized countries and in particular Europe, where consumption in 2013 is expected to be the lowest since the 1980s.
IEA’s report came just a day after the Organization of the Petroleum Exporting Countries slashed its global oil-demand forecast.
Overall, Citi Futures analysts, who have long been bearish on crude, said there was certainly enough supply to cover current global energy demand.
“There is no physical tightness to limit the downside in crude oil during periods of speculative-long liquidation,” they wrote in a note Thursday, advising clients to short Nymex crude with a protective buy-stop at $108.40.
The losses for Nymex and Brent crude came despite a weakening for the U.S. dollar, which is normally a positive for oil and other dollar-denominated commodities.
The ICE dollar index DXY -0.49% , which measures the U.S. unit against six rivals, was at 82.32, down from 82.508 late Wednesday in North America.
Among other energy futures, May gasoline RBK3 +0.11% added to its 2.6% tumble from Wednesday, edging 0.1% lower to sit at $2.86 a gallon.
The contract had sold off during regular Nymex trade due to an unexpected increase in stockpiles shown in the EIA’s weekly report.
May heating oil HOK3 -0.10% shed a penny, or 0.2%, to $2.94 a gallon, while May natural gas NGK13 +0.71% added another 3 cents, or 0.7%, after its 7-cent advance Wednesday to sell at $4.11 per million British thermal units.
Michael Kitchen is Asia editor for MarketWatch and is based in Los Angeles. You can follow him on Twitter at @KitchenNews.
Sara Sjolin is a MarketWatch reporter based in London. Follow her on Twitter @sarasjolin.
