Crude oil futures rose on Middle East worries and a drop in OPEC production even as the International Energy Agency (IEA) cut its oil demand forecast. The commodity remained well bid above $92 per barrel in London trades amid mixed movement in equities. OPEC production fell 510,000 barrels a day to 31.17 million last month as Iranian sanctions reduced exports pressuring oil higher. Political tensions between Turkey and Syria are adding to the bullish fervor. WTI futures are placed at $92.15, up 8 cents per barrel on the day. Meanwhile, the Euro rose towards 1.3000 levels against the US dollar as industrial production in the euro zone rose unexpectedly in August, rising 0.6% after an increase of 0.6% the previous month. The global economic worries continue to affect sentiments and marketmen eyed a statement from the IMF's Lagard who stated that the current financial system condition is not much safer than it was during the Lehman collapse. Dollar is holding at 1.2933 against the Euro right now. Meanwhile, the German Finance Minister Wolfgang Schaeuble stated that latest ratings downgrade of Spain is based on misconceptions. Euro had tested a ten day low of 1.2821 yesterday. The lows around 1.2800 have acted as a good support for the single currency earlier in the week. The International Energy Agency (IEA) cut oil demand growth forecast for the current year yet again today amid weak economic scenario around the world. In its monthly oil market report the IEA revised its expectations of global oil demand growth to 700,000 barrels a day this year. However, the agency kept its 2013 demand growth forecast unchanged at 800,000 barrels a day. The sluggish oil demand was met last month by a decline in supply from the Organization of Petroleum Exporting Countries, which fell to an eight-month low in September, the IEA said.WTI Futures have recovered from their lows near $88 per barrel this week but upside has remained capped and prices have not been able to break above $93 levels. The MCX Crude oil futures yet again neared Rs 4900 per barrel levels in intraday moves and currently trade at Rs 4874, up Rs 19 per barrel on the day. The open interest is up by a massive 12% on the day so far.
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