Headlines
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Dollar slide and higher stock markets send crude higher
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Gold extends its record-breaking run
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Stronger Chinese import lifts copper price
Brent and Distillates
Yesterday crude oil prices hit their highest level of the year as stock markets surged and the dollar's slide continued.. No other fundamental reasons supported the latest price rally however Goldman Sachs predicts a rebound in diesel demand in the transportation sector, driven by the need to restock goods for Christmas shopping spree.
OPEC, like the IEA, expects higher demand for its crude to average 28.6 mln.b/d in 2009, i.e.100 kb/d more than its previous forecast a month ago. The oil producer group also revised upward its forecast of the call on OPEC crude in 2010. It now sees demand averaging 28.4 mln.b/d, i.e.300 kb/d more than previously forecast. The cartel noted that the higher projection for the current year nevertheless represented a "considerable" decline of 2.3 mln.b/d compared with 2008.
India imported an estimated 11.165 mln.t of crude in August, or an average of 2.64 mln.b/d, emerging out of a trough in June and July, the latest oil ministry data showed. The August figure was up 11.43% from July and 7.1% higher than imports in the corresponding period of 2008.
Iraq has given a consortium led by Eni, the Italian oil group, the right to develop its giant Zubair field, in a deal that signals the country’s desire to attract more of the world’s biggest oil companies 40 years after nationalising its oil industry.
However, Iraq is also in talks with other companies that walked away in June. Lukoil of Russia on Tuesday confirmed that it and U.S. ConocoPhillips would restart discussions for Iraq’s West Qurna field. Also Royal Dutch Shell said it was still in talks with Baghdad.
Japan's commercial crude inventories fell 4 % last week from the week before, while refinery utilisation dropped to its lowest level since late June, reflecting weak demand and maintenance at plants, industry data showed on Thursday. Crude oil stocks declined 3.9 mln.b from the week before to 90.91 mln.b in the week to Oct. 10, the Petroleum Association of Japan said.
