Crude recovered to trade above $94 in Europe as the equities edged up and bargain buying propped up the commodity after prices tumbled to six week lows. Crude oil tumbled under $93 per barrel in Asia today, extending its downward break after falling under $100 per barrel on demand worries and the strength in the US dollar last week.
Last week, the International Energy Agency (IEA) lowered its forecasts for global oil demand for 2011 and 2012 by 160,000 barrels a day and 200,000 barrels a day, respectively, due to the more precarious economic backdrop and weaker fourth-quarter data, according to media reports. The agency now expects global oil demand to average 89.0 million barrels a day in 2011 and 90.3 million barrels a day in 2012.
However, prices bounded from these levels given the barrage of upbeat economic data in the US. The WTI futures broke above $94 per barrel and currently quote at $94.01, up 26 cents on the day. Oil is down around 10 dollars in last four weeks. Prices had topped six-month highs of $103 on November 17.
MCX Crude oil futures slumped by more than Rs. 200 during the last week, breaking well under the critical Rs. 5000 per barrel mark. The counter quotes at Rs. 4969, up Rs. 19 per barrel on the day.
