Crude plunges

Prices drop as IEA cuts oil demand forecast

Crude oil slumped nearly 6% today, Monday, 13 April, 2009 after the International Energy Agency lowered its forecast for this year's global oil demand. At the end, crude managed to pare some of its losses.

On Monday, crude-oil futures for light sweet crude for May delivery closed at $50.05/barrel (lower by $4.2 or 2.19%) on the New York Mercantile Exchange. During intra day trading, it fell by 6.5% at one point. Last week, crude ended lower by 0.5%.

Crude ended March trading up 10.9%. It rallied 11.3% in the first quarter. For the month of February, crude prices had ended higher by 1.5%.

Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 68% since then. Year to date, in 2009, crude prices are higher by 12.5%. On a yearly basis, crude prices are lower by 50%.

EIA reported today that it is cutting its demand projection by 1 million barrels a day. After the latest revision, global oil demand this year is now forecast at 83.4 million barrels a day, which is 2.4 million barrels a day below the 2008 level.

Also at the Nymex on Monday, May reformulated gasoline fell nearly 2 cents, or 1.2%, to $1.4632 a gallon, and May heating oil dropped 3 cents, or nearly 2.2%, to $1.398 a gallon.

May natural-gas futures rose nearly 2 cents, or 0.5%, to $3.628 per million British thermal units.

Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.

At the MCX, crude oil for March delivery closed at Rs 2,566/barrel, lower by Rs 41 (1.6%) against previous day's close. Natural gas for April delivery closed at Rs 181.3/mmbtu, higher by Rs 0.9/mmbtu (0.5%).