 "Oil prices bounce back in Asian trade")
Oil prices bounced back in Asia today as investors weighed a rise in US crude inventories and production against a forecast by OPEC's chief of rising demand.
US benchmark West Texas Intermediate for November delivery climbed 23 cents to $48.04 and Brent crude for November gained 21 cents to $51.54 in late-morning Asian trade.
Prices tumbled yesterday after a US Department of Energy report showed commercial crude stockpiles rose more than expected in the week ending October 2, indicating softer demand in the world's top oil consuming nation.
US production, which had fallen by 40,000 barrels per day in the previous week, unexpectedly surged by 76,000 barrels per day, dousing hopes of an easing in the global crude oversupply.
Traders, however, were also weighing remarks by Abdalla Salem El-Badri, secretary-general of the Organization of the Petroleum Exporting Countries, that demand will rise more than projected this year.
"World oil demand is estimated to increase by 1.5 million barrels per day in 2015, higher than the initial projection," El-Badri said in a statement to the International Monetary Fund (IMF).
"In 2016, improvement in global economic activities is anticipated to support world oil demand to grow by 1.3 million barrels per day.
US benchmark West Texas Intermediate for November delivery climbed 23 cents to $48.04 and Brent crude for November gained 21 cents to $51.54 in late-morning Asian trade.
Prices tumbled yesterday after a US Department of Energy report showed commercial crude stockpiles rose more than expected in the week ending October 2, indicating softer demand in the world's top oil consuming nation.
Also Read
Stockpiles rose by 3.1 million barrels, more than the market estimate of 2.25 million barrels. That brought inventories to 461.0 million barrels, more than 27% higher than a year ago.
US production, which had fallen by 40,000 barrels per day in the previous week, unexpectedly surged by 76,000 barrels per day, dousing hopes of an easing in the global crude oversupply.
Traders, however, were also weighing remarks by Abdalla Salem El-Badri, secretary-general of the Organization of the Petroleum Exporting Countries, that demand will rise more than projected this year.
"World oil demand is estimated to increase by 1.5 million barrels per day in 2015, higher than the initial projection," El-Badri said in a statement to the International Monetary Fund (IMF).
"In 2016, improvement in global economic activities is anticipated to support world oil demand to grow by 1.3 million barrels per day.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%