Related News
Oil falls on Libya, Goldman Sachs demand warning
Source: Agencies |
April 12, 2011, Tuesday
|
Online Edition
Online Edition
OIL fell yesterday after Libya's Moammar Gadhafi appeared to accept a cease-fire plan with rebel forces, increasing the chances that Libyan crude ill return to world markets soon. Crude prices were also pushed down as the IMF cut its forecast for US growth this year and Goldman Sachs warned that consumers in the US are starting to conserve energy in the face of high oil prices.
Benchmark West Texas Intermediate crude for May delivery lost US$2.87 to settle at US$109.92 per barrel on the New York Mercantile Exchange. Earlier in the day, crude rose as high as US$113.46 per barrel, the highest level since September 2008.
The drop followed news over the weekend that Gadhafi had accepted a "road map" to a cease-fire from a delegation of African leaders. Although rebel leaders later rejected the truce proposal because it did not include Gadhafi stepping down, traders considered the cease-fire move a sign that oil exports will start again once the fighting stops.
"A cease-fire could ultimately lead to a stable enough environment that could accommodate at least some oil production" in Libya, analyst Jim Ritterbusch said. Before the rebellion broke out, Libya produced about 1.6 million barrels of oil per day and supplied nearly 2 percent of world demand. Most of Libya's oil went to refineries in Europe.
Goldman Sachs analyst Jeffrey Currie recommended that investors stop buying a specific oil contract that the investment bank had previously recommended. Currie said the US appears to have started cutting oil consumption as consumers face higher prices for gasoline and other petroleum-based fuels. Currie focused on the oil contract for December delivery, but investors will likely take that as a general recommendation to sell, analyst Stephen Schork said. Goldman Sachs is a major player in oil markets and it has been one of the most vocal about the potential for oil to rise this year, Schork said.
"They're one of the big guys that everyone follows, and they have a tremendous influence on what other people do," Schork said.
The International Monetary Fund lowered its forecast for US growth this year to reflect the increased burden of higher oil prices. The IMF said the economy of the world's largest oil consumer will expand by 2.8 percent this year, down 0.2 percentage point from the IMF projection in January.
Traders and analysts are awaiting a trove of data about world oil supply and demand that's expected Tuesday from the Organization of Petroleum Exporting Countries, the International Energy Agency and the Energy Department's Energy Information Administration. MasterCard SpendingPulse also will release its latest survey of retail gasoline demand in the US
In other Nymex trading for May contracts, heating oil lost 6.72 cents to settle at US$3.2525 per gallon and gasoline futures dropped 6.02 cents to settle at US$3.2005 per gallon. Natural gas gained 6.7 cents to settle at US4.108 per 1,000 cubic feet.
In London, Brent crude gave up US$2.70 to settle at US$123.42 per barrel on the ICE Futures exchange.
Benchmark West Texas Intermediate crude for May delivery lost US$2.87 to settle at US$109.92 per barrel on the New York Mercantile Exchange. Earlier in the day, crude rose as high as US$113.46 per barrel, the highest level since September 2008.
The drop followed news over the weekend that Gadhafi had accepted a "road map" to a cease-fire from a delegation of African leaders. Although rebel leaders later rejected the truce proposal because it did not include Gadhafi stepping down, traders considered the cease-fire move a sign that oil exports will start again once the fighting stops.
"A cease-fire could ultimately lead to a stable enough environment that could accommodate at least some oil production" in Libya, analyst Jim Ritterbusch said. Before the rebellion broke out, Libya produced about 1.6 million barrels of oil per day and supplied nearly 2 percent of world demand. Most of Libya's oil went to refineries in Europe.
Goldman Sachs analyst Jeffrey Currie recommended that investors stop buying a specific oil contract that the investment bank had previously recommended. Currie said the US appears to have started cutting oil consumption as consumers face higher prices for gasoline and other petroleum-based fuels. Currie focused on the oil contract for December delivery, but investors will likely take that as a general recommendation to sell, analyst Stephen Schork said. Goldman Sachs is a major player in oil markets and it has been one of the most vocal about the potential for oil to rise this year, Schork said.
"They're one of the big guys that everyone follows, and they have a tremendous influence on what other people do," Schork said.
The International Monetary Fund lowered its forecast for US growth this year to reflect the increased burden of higher oil prices. The IMF said the economy of the world's largest oil consumer will expand by 2.8 percent this year, down 0.2 percentage point from the IMF projection in January.
Traders and analysts are awaiting a trove of data about world oil supply and demand that's expected Tuesday from the Organization of Petroleum Exporting Countries, the International Energy Agency and the Energy Department's Energy Information Administration. MasterCard SpendingPulse also will release its latest survey of retail gasoline demand in the US
In other Nymex trading for May contracts, heating oil lost 6.72 cents to settle at US$3.2525 per gallon and gasoline futures dropped 6.02 cents to settle at US$3.2005 per gallon. Natural gas gained 6.7 cents to settle at US4.108 per 1,000 cubic feet.
In London, Brent crude gave up US$2.70 to settle at US$123.42 per barrel on the ICE Futures exchange.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
