Forexpros –
Forexpros – Crude oil futures moved lower in Asian trade Wednesday, following higher-demand forecasts from leading oil production groups and hopes for European stability following the reported resignation of Italy’s prime minister.
On the New York Mercantile Exchange light, sweet crude futures for December delivery traded at USD96.93 a barrel during early Asian trade, sagging 0.18%, after hitting a daily high of USD97.07.
On Tuesday, Italy’s Parliament approved a routine budget proposal, with opposition lawmakers abstaining, but leaving Berlusconi short of an absolute majority and facing an imminent confidence vote unless the prime minister were to step down.
The vote was widely expected to be a referendum on Berlusconi’s prime ministership and reports late Tuesday said he had signaled a willingness to resign.
Meanwhile, the International Atomic Energy Agency, in a report Tuesday said that Iran had acquired nuclear weapons capabilities and that “serious concerns” surrounded the nation’s ability to apply those capabilities militarily.
Investors had been closely watching the report as moves by Iran to gear its nuclear capabilities to the military could prompt the United Nations to impose new sanctions on Iran, including oil exports.
Iran is the world’s fourth largest crude oil producer and the second biggest exporter among OPEC members. The country produces approximately 3.7 million barrels of oil a day.
German lender Commerzbank said in a report earlier that the concerns over Iranian supplies “justifies a certain risk premium on the price of oil.”
Elsewhere, the Organization of the Petroleum Exporting Countries revised its demand forecast in a Tuesday report, predicting that global oil demand would rise by 1.9 million barrels a day, to 92.9 million barrels a day by 2015.
OPEC added a caveat, however, noting that “medium term prospects for oil will depend on the ability of governments to maintain their various support measures for as long as it takes to solve their economic issues.”
Separately Tuesday, the U.S. industry group, the American Petroleum Institute reported that crude oil supplies rose by 148,000 barrels for the week ending November 4.
A falling U.S. dollar helped to provide downside support for oil futures, as dollar-denominated futures contracts tend to rise when the dollar falls.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, lost 0.02% to 77.79.
On the ICE Futures Exchange Brent oil futures for November delivery retreated fractionally by 0.03% to trade at USD115.20.
The U.S. Energy Information Administration was due to release its weekly report on crude oil inventories later Wednesday.
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