12 Dec 2014
Crude falls after IEA cut demand forecasts for 2015
FXStreet (Mumbai) - Crude prices at both the sides of the Atlantic fell after the International Energy Agency (IEA). In its December oil market report, cut the outlook for global oil demand in 2015.
WTI Crude for January delivery traded 1.19% lower at USD 59.24/barrel, while the Brent Crude for January delivery traded 0.76% lower at USD 63.21/barrel at the time of writing. The prices came under pressure as the IEA now sees global oil demand in 2015 at 0.9 million barrels per day. That is reduction of 230K barrels per day from the previous forecast. Moreover, the agency has reduced the demand forecast for the 4th time in 5-months.
The agency also said it "may well take some time” before supply and demand respond to oil price falls and that global oil inventories are likely to build through 2015 and could “possibly bump against capacity limits”. The bearish IEA report followed the similar downward revision of global oil demand forecast by the Organization of Petroleum Exporting Countries (OPEC) earlier this week.
Brent Crude Technical Levels
Brent has an immediate support located at 60.72 (July 2005 high), under which losses could be extended to 59.49 (July 2009 low). Meanwhile, resistance is seen at 63.66 and 65.00 levels.
WTI Crude for January delivery traded 1.19% lower at USD 59.24/barrel, while the Brent Crude for January delivery traded 0.76% lower at USD 63.21/barrel at the time of writing. The prices came under pressure as the IEA now sees global oil demand in 2015 at 0.9 million barrels per day. That is reduction of 230K barrels per day from the previous forecast. Moreover, the agency has reduced the demand forecast for the 4th time in 5-months.
The agency also said it "may well take some time” before supply and demand respond to oil price falls and that global oil inventories are likely to build through 2015 and could “possibly bump against capacity limits”. The bearish IEA report followed the similar downward revision of global oil demand forecast by the Organization of Petroleum Exporting Countries (OPEC) earlier this week.
Brent Crude Technical Levels
Brent has an immediate support located at 60.72 (July 2005 high), under which losses could be extended to 59.49 (July 2009 low). Meanwhile, resistance is seen at 63.66 and 65.00 levels.