Thursday, May 23, 2013

World oil prices fell

World crude oil prices fell, triggered speculation increase the availability of monetary stimulus by the U.S. central bank (the U.S.), the Federal Reserve, after the release of a number of negative U.S. economic data.

The price of West Texas Intermediate oil (WTI) for delivery in June 2013 Nymex Exchange, yesterday at 16:02 pm, down 0.89 percent to 93.46 U.S. dollars per barrel, compared to the price of the previous day. In the last week, oil prices trimmed 3.04 percent.

Despite the weekly U.S. oil reserves fell 600,000 barrels, the release of U.S. economic data and European bad cause market participants worry, oil demand from both regions will be down.

Gross domestic product (GDP) European quarter I-2013, the show deceleration of 0.2 per cent compared to the previous quarter. April inflation data released in the Euro zone, yesterday, showed annual inflation figure fell to 1.2 percent in March compared to 1.7 percent figure. European central bank targets annual inflation up to 2 percent this year.

New data in the U.S. also showed poor results. Growth in U.S. industrial production fell 0.5 percent in April from the previous month of March rose 0.3 percent as large.

Wicaksono Fair torch, Hairdresser Millenium Futures analysts say, the decline in oil prices is only temporary, because oil prices are touching the level of U.S. $ 96 per barrel. Of market response to U.S. economic data is bad is justified.

However, further correction might occur, given Saudi Arabia's plan will increase production. Torch predict the movement of oil prices tend to weaken limited next weekend, while waiting for the release of U.S. economic data and Europe, as well as the G-8 meeting results. Recent strengthening trend likely will happen end of May.

Daru Wibisono, Monex analyst Invest Future add, weakening oil prices is the U.S. dollar strengthening scan that lasted nearly two weeks. U.S. and European economic data is getting bad press in oil prices.

According to Daru, the decline in oil prices is going to happen next week, due to global economic conditions that have not been recovered. Undermining the U.S. dollar could only limit the decline in oil prices. "Outlook not good economy make feared oil demand will decline," said Daru.

Torch predict that oil prices will correction limited in the range of 91 U.S. dollars-96 dollars U.S. per barrel week ahead. Daru predict that oil prices will weaken the U.S. dollar 90-95 U.S. dollars per barrel.