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Crude Heads For Weekly Loss As Taper Concerns Grow; Libya Eyed

ByICN.com
Published 12/13/2013, 07:00 AM
Updated 07/09/2023, 06:31 AM

Crude oil is heading for a weekly drop as Fed stimulus taper concerns are growing ahead of next week’s monetary policy meeting, which could slow the pace of economic recovery in the US, the world’s biggest oil consumer, which might damage the outlook for oil demand.

Taper expectations have increased as the recent economic data improved the outlook for the US’s economic growth while lawmakers reached a budget deal on Tuesday; the latest retail sales numbers that rose 0.7% signaled that consumer spending is emerging from a third-quarter lull.

Such a move from the Federal Reserve would strengthen the greenback and weigh on demand for dollar-denominated commodities such as oil, keeping prices lower, however, the stronger data may keep prices supported as it could lead to higher demand.

Focus also turns today to Libya, which is set to reopen three eastern ports on Sunday, that could increase oil exports. Analysts are doubtful whether Libya could raise output as internal conflicts continued to threaten the nation`s oil industry.

Markets will also watch the progress of nuclear talks between major powers and Iran. If some of the sanctions on Iran are lifted, its oil exports may rise, increasing the global supply and probably weigh on oil prices.

- WTI crude oil futures for January is trading around $ 97.47 a barrel after falling $0.03

- Brent futures for January settlement is trading around $ 1 0 8.67 a barrel after falling $0.01

- Natural gas is trading at $ 4.367 per cubic feet after falling 0.95%

- Gasoline is trading at $ 2.6349 per cubic feet after rising 0.01%

- Heating oil (diesel) is trading at $ 2.9769 a gallon after falling 0.11%

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