Crude oil futures surged above $93 a barrel in the early London trades today with traders focused on the Euro Zone GDP and US retail sales. For the week, crude oil futures jumped 2.2%, the second consecutive weekly advance.
Nymex crude for September delivery rose 53 cents to $93.40 a barrel in electronic trade after falling 0.5% Friday following a warning from the International Energy Agency that global crude demand could suffer from sluggish economic growth.
The International Energy Agency on Friday cut its forecast for oil demand growth in 2013 to 800,000 barrels per day from a previous call of 1 million barrels per day, citing “sluggish” global growth prospects. Friday's forecast downgrade was the IEA's fourth this year, after cuts in January, February and June.
On Thursday, the Organization of Petroleum Exporting Countries warned of a “horizon full of turbulence” that could lead to a sharp fall in demand growth for 2013.
The euro and dollar edged higher against most major currencies ahead of key European and U.S. data, while the pound and Australian dollar slipped in quiet foreign-exchange trade in Asia hours Monday. French, German and euro-zone GDP figures are expected to show that while the German economy grew slightly in the second quarter, the euro zone contracted.
The ICE dollar index, which tracks the greenback against six other units, rose to 82.573 from its 82.541 level late Friday in North America. The euro also firmed slightly, rising to $1.2291 from $1.2287 late Friday. The Japanese yen was little changed — with the dollar buying ¥78.27, as it did late Friday — after the market shrugged off worse-than-expected April-June economic growth data released early in the day.
In the week ahead, market participants will be awaiting data on second quarter growth from the euro zone and looking ahead to central bank minutes from the Bank of Japan and the BoE, amid ongoing speculation that world central banks may take steps to shore up economic growth.
Investors will also watching US data on retail sales, inflation and housing in an attempt to assess the strength of the U.S. economic recovery.
MCX August crude futures are trading more than Rs 30 at Rs 5172 per barrel. It may face resistance near Rs 5190 levels today.
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