ND:Oil Futures Lower as Investors Weigh Mixed Cues
Crude-oil futures were slightly lower in London trade Friday as investors weighed mixed market cues and oil-demand projections by energy agencies.
Brent crude for April delivery on London's ICE futures exchange traded down 19 cents, or 0.18%, at $108.33 a barrel. On the New York Mercantile Exchange, light, sweet crude futures for delivery in March traded down 46 cents, or 0.46%, at $99.89 a barrel.
Paris-based energy watchdog, the International Energy Agency, said in its monthly report that oil-demand growth in developed countries more than compensated for weaker-than-expected demand from emerging-market economies.
Global oil inventories were tight in the fourth quarter, with commercial oil stocks in developed countries plummeting 135 million barrels, the steepest quarterly decline since 1999. As a result, stocks hit their lowest level since 2008 by end-December.
"While there are good reasons to expect the market to rebalance in the next few months, a glut is looking increasingly elusive," IEA said.
Market research and consultancy firm JBC Energy has forecast global oil demand growth in 2014 of 1.16 million barrels a day, with most of the growth coming from non-OECD economies such as India and China.
"European oil demand will continue its falling trend due to substitution effects and efficiency gains," it said.
"North American consumption…is forecast to grow by over 100,000 b/d, about half the growth observed last year," it said, with the key driver of growth being the petrochemical sector, as the shale revolution continues to provide new, different feedstock to refineries.
The U.S. continues to reel from the impact of a massive winter storm that has caused numerous power outages, traffic accidents and flight cancellations. The cold weather was expected to support energy prices, especially heating oil and gas.
Supply disruptions in Libya underpinned Brent crude, after the El Sahara pipeline connecting southern Libyan oil fields to the port of Zawiya was shut down by protesters.
"The impact on throughput is unclear at this stage; the El Sahara oil field has a typical output of 340,000 barrels a day," ANZ said.
The ICE's gasoil contract for April delivery was up $2.00 at $917.00 a metric ton. Nymex gasoline for March delivery fell 107 points to $2.74665 a gallon.
