Crude Oil tested a seven month low this week as investor's appetite remained scrawny with continued worries from European Union. Ample of supplies and reduced offtake led Crude oil remain offbeat. The total supplies of Crude oil reported by Energy Information Administration (EIA) reached 382.52 million barrels on 18 May 2012, up 0.23% from last week. EIA expects that West Texas Intermediate (WTI) Crude oil to average $ 104 per barrel in 2012. The forecast was $ 2 per barrel lower than the earlier estimate.
Light Sweet Crude Oil futures for July closed at $ 90.86 per barrel, on Friday, compared to $ 91.8 per barrel last week. The prices breached crucial $ 90 levels this week to test $ 89.28 per barrel. OPEC in its monthly report mentioned that the decline in Crude oil prices was due to rising production of member countries in earlier months. Physical Crude oil prices shifted into Contango for first time in a year indicating that the demand was lower than supplies. Crude will be waiting fresh talks between Iran and countries like Russia, US, China, France and UK due to be held on 18 June 2012 for fresh cues.
Powered by Commodity Insights