According to a survey, an energy department report of April 15, 2009 may show oil supplies rose 2 million barrels last week. Stockpiles are at the highest since July 1993 as refiners shut units for maintenance. Prices plunged on April 14, 2009 after the International Energy Agency cut its 2009 demand prediction.
“The story for demand remains very weak,” said David Moore, a commodity strategist at Commonwealth Bank of Australia Ltd. in Sydney. “There is no evidence of a turnaround in the economic situation in the U.S.”
Prices are up 11% so far in 2009 after tumbling 54% in 2008. Oil dropped $2.19 on April 13, 2009 to settle at $50.05 a barrel, in the biggest drop on the Nymex since March 30, 2009.
Oil demand will shrink 2.8 percent this year as worldwide gross domestic product declines by 1.4%, As per the International Energy Agency, the adviser to 28 consuming countries. Consumption will decline 2.4 million barrels a day this year, about the same amount that Iraq produces, to 83.4 million barrels a day.
Brent crude oil for May 2009 settlement dropped as much as 63 cents, or 1.2%, to $51.51 a barrel on London’s ICE Futures Europe exchange. It was traded at $51.68 a barrel at 1:12 p.m. Singapore time.
