Oil down on lower demand forecast, Greece crisis



Associated Press

Published — Wednesday 14 November 2012

Last update 14 November 2012 6:55 am

| نسخة PDF Print News | A A

The price of oil slipped to near $ 85 a barrel yesterday as the International Energy Agency lowered its forecast for oil demand and said global supplies were growing.
By early afternoon in Europe, benchmark oil for December delivery was down 44 cents to $85.13 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell 50 cents to finish at $85.57 per barrel on the Nymex on Monday.
The IEA said in its monthly oil market report that it had cut slightly its expectations of how much oil the world will need this year to 89.6 million barrels a day, 80,000 barrels a day less than its forecast from a month ago, on persistent economic weakness in Europe and the impact of Hurricane Sandy in the US.
The Paris-based agency also said global oil supply rose 800,000 million barrels a day in October, to 90.9 million barrels a day, "as rebounding supplies from the Americas and the North Sea offset a slight decline in OPEC crude supplies."
The IEA also said that Iran's oil output had broken a string of seven straight months of declines as China and South Korea appeared to be importing more crude from the Islamic Republic. Iran has been hit by hard economic sanctions by the West over its nuclear program.
Crude oil prices were also affected by renewed uncertainty over debt crisis in the European Union.
Greece's international creditors failed to agree Monday on how to get the country's bailout program back on track. They will meet again on Nov. 20 to continue discussing the release of the next batch of rescue loans totaling € 31.5 million ($ 40 billion).
The European Central Bank, the International Monetary Fund and the European Commission have twice agreed to bail out Greece, pledging a total of € 240 billion in rescue loans. The country has received about €150 billion of those loans so far.
Meanwhile, the U.S. still appears headed for the so-called fiscal cliff — a combination of tax hikes and government spending cuts that will take effect Jan. 1 unless President Barack Obama and Congress can reach a compromise to avert it. Economists believe that would hurt growth in the world's largest economy and possibly risk a recession.
In London, Brent crude, used to price international varieties of oil, was down 85 cents to $108.23 a barrel on the ICE Futures exchange.
Among other energy futures on the New York Mercantile Exchange:
— Heating oil was down 1.52 cents to $2.984 per gallon.
— Gasoline futures dropped 1.38 cents to $2.625 per gallon.
— Natural gas was up 2.9 cents to $3.599 per 1,000 cubic feet.

What's happening around Saudi Arabia

JEDDAH: The Al-Haramain Train project is described as the largest public transportation project in the Middle East. This vital and strategic project is one of the implementation schemes of the mass expansion of the Saudi railway across the country.Th...
JEDDAH: The number of marriages between expatriates and Saudis has dropped 84 percent to 1,928 since the start of this Islamic year that began on Oct. 24, compared to the same period the previous year.The Ministry of Justice said that there were 12,0...
JEDDAH: Unofficial marriage is a refuge for a divorced mother to lead a married life while keeping her children in her custody but without the knowledge of the former husband who could demand the custody of the children if he learned about the ex-wif...
JEDDAH: Makkah’s health department has set up a committee to verify the sick leave certificates of employees.The department stated it would apply government regulations on sick leave, which includes people providing the address of the facilities wher...
RIYADH: The directorate of roads and transport has registered 20 cases of violations worth SR24,500 in Al-Qassim, where the transport ministry continued its surveillance drive against the companies in the transport business.According to the directora...
RIYADH: The implementation of an integrated health plan to combat MERS has resulted in a sharp drop in cases, with only one out of 736 samples testing positive for the contagion in the Kingdom in the last six days. Health Ministry spokesman Dr. Khal...
RIYADH: Muslims must cut traditionally high electricity use during Ramadan in line with the principles of austerity and self-control they are supposed to adopt in this month, economists say.Economist Al-Sadeq Idris said energy use increases during Ra...
JEDDAH: The Ministry of Commerce and Industry will begin next Tuesday to check whether companies are complying with new laws requiring them to place proper price labels on all their products.It is mandatory for companies to stop using phrases such as...
RIYADH: Minister of Islamic Affairs Saleh Al-Asheikh chaired the first meeting with Yemeni scholars to exchange ideas on how to strengthen their role in restoring peace in their country.The first Saudi-Yemen scholars meeting, dubbed the “outreach sch...
RIYADH: To cope with the growing number of applicants (boys and girls) at technical colleges that reached 126,023 last year, a state-run organization launched an online unified portal to ease the enrolment procedures.According to the Technical and V...
RIYADH: A senior government official from Dhaka, who visited Riyadh last week, has sorted out technical issues to expedite issuing 1.5 million machine readable passports (MRP) to Bangladeshi expatriates in the Kingdom. Information and Communication T...
JEDDAH: Jeddah municipality is keen to provide health and food security to residents and visitors of the city, and they are continually conducting inspections of food stores, restaurants, markets and food storage facilities to avoid any violations by...
JEDDAH: Custodian of the Two Holy Mosques King Salman has been awarded a top international prize for his contribution to the propagation of the Qur’an.He was named the “Islamic Personality of the Year” by the Holy Qur’an International Memorization Or...
JEDDAH: Deputy Crown Prince Mohammed bin Salman, second deputy premier, minister of defense and chairman of the Economic Affairs and Development Council, held a meeting in Jeddah on Monday with Sheikh Tahnoon bin Zayed, deputy national security advis...
JEDDAH: The Saudi man who carried out a suicide bombing at a mosque in Kuwait on Friday had no previous convictions for terrorism, the Interior Ministry said.The ministry, through its Twitter account, announced that Fahad Suleiman Al-Gabbaa was born...

Stay Connected

Facebook