WSJ:Crude-Oil Futures Slip in Asia as Growth Concerns Weigh
By Arpan Mukherjee
Crude-oil futures fell in Asian trading Monday as worries about global and Chinese demand weighed on sentiment, with some analysts saying they expect the Organization of the Petroleum Exporting Countries' meeting later this week to be a routine one.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in July traded at $93.53 a barrel at 0624 GMT, down 62 cents in the Globex electronic session. July Brent crude on London's ICE Futures exchange fell 28 cents to $102.36 a barrel.
Analysts expect crude-oil prices to drift lower in the near-term before recovering in the second half of the year, when demand picks up, helped by a projected improvement in global growth.
The OPEC meeting on Friday is likely to be a non-event with another rollover of targeted production cuts, Michael Wittner, an analyst with Societe Generale, said in a report. Saudi Arabia is keen on OPEC production cuts to support oil prices.
"With stronger second-half demand, the Saudis and the OPEC will increase real output, but only slowly and cautiously," Mr. Wittner said.
On Sunday, Iran became the second country after Venezuela to say that it will act to defend the current oil-price level of $100 a barrel.
"Overall, we maintain our view that [Brent] prices are likely to drift lower before moving toward $111/bbl over the summer," Barclays said in a report.
Trading is likely to be thin with the U.K. and the U.S. markets closed Monday for public holidays.
Analysts said current supply and demand are broadly balanced and demand is expected to increase in the next three months.
At 0624 GMT, oil product futures were mixed.
Nymex reformulated gasoline blendstock for June--the benchmark gasoline contract--fell 167 points to $2.8223 a gallon, while June heating oil traded at $2.8515 a gallon, 54 points lower.
ICE gasoil for June changed hands at $856.25 a metric ton, up $2 from Friday's settlement.
Write to Arpan Mukherjee at arpan.mukherjee@wsj.com
