Oil falls on IEA demand forecast cut
U.S. crude oil price fell on Wednesday as the International Energy Agency cut global oil demand forecasts, Xinhua informs.
In line with the Organization of Petroleum Producing Countries, the International Energy Agency (IEA), a Paris-based oil watchdog, lowered its global oil demand growth forecast for 2011 by 50,000 barrels per day to 990,000 barrels, and predicted world oil consumption in 2012 to expand by 1.25 million barrels per day, 160, 000 barrels lower than previous estimates. IEA said the slowing world economic growth posed great risks to oil demand.
Earlier, oil rallied after news that Slovakia would pass the plan of expanding European Financial Stability Facility by Friday. Meanwhile, European Commission President Jose-Manuel Barroso presented a plan to help strengthen European banks and lower Greece's debt, which is seen as the strongest efforts to address the problem.
As the equities rose, partly lifted by the upbeating PepsiCo earnings, risk appetite also rose.
The dollar fell as the euro increased. The dollar index dropped about 0.8 percent.
Light, sweet crude for November delivery fell 24 cents, or 0.28 percent to settle at 85.57 dollars a barrel on the New York Mercantile Exchange.
But in London, Brent crude for November delivery climbed slightly and last traded around 111 dollars a barrel.