Tel: +91 22 2757 9611, 2757 7834

i-maritime News Service

Brent crude falls to $103 per barrel - 2013-06-12

Oil prices fell in line with Asian equities today following the Bank of Japan’s decision to hold off unveiling any fresh economic stimulus, analysts said. New York’s main contract, light sweet crude for delivery in July, dropped 61 cents to $94.77 a barrel and Brent North Sea crude for July delivery shed 39 cents to $102.57 in mid-morning trade.

“The market is reacting to fears that various governments will end stimulus measures. This has caused a pull-back in prices,” said Victor Shum, managing director at IHS Purvin and Gertz in Singapore. Global investors were sent running after the BoJ said on Tuesday that the Japanese economy was “picking up”, while it warned of possible headwinds caused by weakness in key export markets it chose not to add to April’s giant bond-buying splurge.

The decision reignited concerns about the role of central banks in supporting the economy, with the US Federal Reserve signalling that it wanted to draw up a plan to wind down its $85-billion-a-month stimulus scheme. Oil prices had fallen earlier in the week after the Organization of the Petroleum Exporting Countries (OPEC) slightly lowered its 2013 global demand outlook, while disappointing economic data in China added to jitters.

In its June oil market report released on Tuesday, OPEC estimated 2013 global demand at 89.65 million barrels per day, down from the prior month’s forecast of 89.66 million.

Source: Hindu Business Line