Comments
Oil prices fell in Asia today on a stronger dollar as traders grow concerned about Greece’s troubled debt negotiations, while the International Energy Agency’s prediction of an end to the recent surge in demand added downward pressure.
US benchmark West Texas Intermediate for July delivery fell 22 cents to $60.55, while Brent crude for July delivery eased 16 cents to $64.95 in late-morning trade.
Greek debt worries
Oil prices turned “bearish as the dollar’s rally against the euro on Greek debt worries weighed on demand for commodities”, Singapore’s United Overseas Bank said in a market commentary.
The euro fell to $1.1255 in Asia from $1.1260 in New York on Thursday and $1.1323 on Wednesday with markets on edge about troubled Greek negotiations with its creditors.
The stronger greenback makes crude more expensive for buyers using weaker currencies.
IEA demand forecast
Also, the Paris-based IEA said there were “doubts” that some reasons for a recent pick-up in demand — such as an exceptionally cold European winter that lifted heating demand — would be repeated.
It also pointed to “signs of persistent oversupply” in the market in light of still-high US crude output and record production from key OPEC members.
However, in its monthly report on the oil market, the IEA lifted its 2015 demand forecast to 94 million barrels a day, 300,000 more than the previous level.
The increased forecast came after world oil demand soared in the first three months of 2015.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.