Oil prices mixed after IEA slashes demand outlook for 2014, 2015August 13, 2014 - 14:33 AMT PanARMENIAN.Net - Oil prices were mixed in Asia Wednesday, Aug 13, after the International Energy Agency slashed its demand outlook for 2014 and 2015 while reporting a glut in global supplies despite conflicts in Iraq and Ukraine. U.S. benchmark West Texas Intermediate for September rose four cents to $97.41 in afternoon Asian trade, after declining 71 cents in New York. Brent crude for September delivery was down 31 cents at $102.71. It fell $1.66 to finish at $103.02 in London on Tuesday, its lowest closing point since July 1, 2013. Cutting its demand outlook for this year and next, the IEA on Wednesday said "the oil market today looks better supplied than expected". The agency, the oil policy arm of the Organisation for Economic Cooperation and Development, projected 2014 oil demand would rise by 1.0 million barrels a day to 92.7 mbd, compared to its July forecast for growth of 1.2 mbd. It cut its 2015 demand forecast to 94 million barrels a day -- 300,000 barrels less than the previous prediction. "The sharp declines in oil prices is mainly due to the IEA report, with an unwinding of risk premiums associated with conflicts in Iraq and Ukraine," AFP quoted Ric Spooner, chief market analyst at CMC Markets in Sydney, as saying. "There is an understanding in the market now that there is a significant supply buffer in global markets in the case of a supply disruption," he said. Oil prices have seen a build in risk premium in recent months due to armed insurgencies in crude producer Iraq as well as Ukraine, a key conduit for Russian energy exports to Europe. Spooner said investors will next be scrutinising the latest U.S. stockpiles report to be released later Wednesday for clues about demand in the world's top crude consumer. Related links: Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | Kazakhstan welcomes Yerevan, Baku’s agreement to meet in Almaty Kassym-Jomart Tokayev has welcomed the agreement of Baku and Yerevan to hold negotiations in Almaty. Armenia offers to temporarily host, preserve Gaza manuscripts The Armenian Foreign Minister has said Yerevan is ready to help preserve manuscripts from the conflict zone in Gaza. Aliyev says no need for mediators in Armenia-Azerbaijan process Azerbaijani President Ilham Aliyev believes that Baku and Yerevan do not mediators in the process of normalizing relations. Aram I supports Karekin II’s “patriotic position” Catholicos of the Great House of Cilicia Aram I has expressed support for the Mother See of Holy Etchmiadzin. |