U.S. crude oil futures ended lower last Friday, June 11, snapping a three-day winning streak, as disappointing U.S. retail sales out shadowed a report of improved consumer mood, underlining the shaky pace of economic recovery. On the New York Mercantile Exchange, crude for July delivery settled at US$73.78 a barrel, down US$1.70, or 2.25 percent. For the week, however, prices rose US$2.27, or 3.17 percent. In London on the Intercontinental Exchange, July Brent crude ended down 94 cents, or 1.25 percent at US$74.35. NYMEX July RBOB ended down 2.08 cents, or 1.0 percent, at US$2.0497 a gallon. NYMEX July heating oil finished down 2.75 cents, or 1.35 percent, at US$2.0053 a gallon.
Organization of the Petroleum Exporting Countries (OPEC) said world oil demand would rise by 940,000 barrels per day (bpd) in 2010, 10,000 bpd lower than previously forecast. The group said crude oil production from countries not in OPEC would jump by 640,000 bpd this year, raising its estimate from a previous forecast of a 530,000 bpd rise. Demand for OPEC crude in 2010 is projected to average 28.8mn bpd, following a downward revision of 70,000 bpd from the previous assessment. Total world demand is seen averaging 85.4mn bpd in 2010, but demand for itscrude would decline by 175,000 bpd from last year.
International Energy Agency (IEA) lowered its estimate for oil demand growth this year by 70,000 barrels per day from its previous estimate, saying oil use will increase by 1.5mn bpd to 85.51mn bpd as uncertainty about economic growth in China and in the euro zone has continued to weigh on oil markets. Non-OPEC supplies are expected to fall by 190,000 bpd in 2011, as supply growth from the United States slows due to the drilling moratorium.
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