Forexpros –
Forexpros – Crude oil futures moved lower in Asian trade Wednesday, following a delayed vote in Slovakia’s Parliament on expansion of the European rescue fund and implications for a slowdown in global energy demand.
On the New York Mercantile Exchange light, sweet crude futures for November delivery traded at USD84.93 a barrel during early Asian trade, falling 1.03%, after hitting a daily high of USD85.44.
Slovakia’s Parliament, on Tuesday, postponed a vote on expanding the USD600 billion European Financial Stability Facility, raising new concerns over the region’s ability to stem the spread of debt in the euro-zone.
Earlier in the day, representative of the so-called troika, the European Union, International Monetary Fund, and European Central Bank, said Greece was likely to receive its USD10.9 billion rescue tranche by early November, allowing Athens to avert default.
Wall Street shares ended Tuesday’s session mixed, with the Dow Jones Industrial Average shedding 0.15% to 11,416.30, while the Nasdaq Composite Index gained 0.66% to 2,583.03, and the S&P 500 rose by 0.05% to end the day at 1,195.54.
Adding to selling pressure on oil futures, the Organization of Petroleum Exporting Countries lowered its forecast for global demand through 2012 for the second straight month.
OPEC said world demand for oil was expected to reach 87.8 million barrels per day through the end of 2011, down from the cartel’s earlier forecast of 87.99 million barrels.
In its monthly report, OPEC cited sluggish growth in developed nations and that “Uncertainty in the world economy has dimmed the picture for 2011.”
Elsewhere, Royal Dutch Shell announced a suspension of crude shipments from Nigeria due to pipeline disruptions.
A rising U.S. dollar contributed to lower oil futures, as dollar-denominated futures contracts tend to fall when the dollar rises.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, rose 0.12% to 78.02.
On the ICE Futures Exchange Brent oil futures for November delivery eased down 0.13% to trade at USD107.52.
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