Organization of Petroleum Exporting Countries (OPEC)’s reducing estimation of 40000 barrels per day, to 800,000 barrels for each day in 2013, the International Energy Agency(IEA)’s sinking forecast of 45,000 barrels a day to 795,000 barrels in 2013 and the US government's Energy Information Administration’s revelation of Inventory weekly report of detailing about the increasing of 250000 barrels contrary to the anticipation of growth of 1.4 million barrels during the week completed on April 5 drove the price of crude oil down.
Meanwhile, IMF has revised this year’s previous estimation of growth of U.S GDP from 2% to 1.7%. It has also changed its world economic stance of this year to 3.4% contrary to its older assessment of 3.5%. The director of this institution asked all central banks to sustain loose money supplies to boost the progress of the economy. IMF’s lessening of the growth projection of the global economy has also deeply impacted the price of crude oil.
Thomson Reuters/University of Michigan's preliminary consumer sentiment index witnessed a downfall of 72.3, which is 9 month low, fell well below the expectation of 78.5 in April as against 78.6 in the previous moth. Both the retail sales and core retail sales (excluding automobile sales) in the U.S. fell by 0.4% in March against the anticipation of climbing up of 0.1%. These two indices witnessed 1 % elevation in February.
The U.S. producer price index also saw the drop of 0.6% in March, well below the projection of 0.2% fall where as it saw the increasing of 0.7% in the February. A little consolation is that the core producer price index in March sustained the February month’s increased level of 0.2% as per the forecast of experts. All these releases hit the crude price hard and will likely pull it down. More over, attention should be paid to the events in the Korean peninsula region, as efforts to prevent, a likely war between North Korea and South Korea, are going on. Any negative news comes out of this region may severely hit the prices of crude oil. India may derive benefit out of a fall in crude oil prices as it is the largest importer of crude oil. The shrinking of crude oil prices may help it to reduce the current account deficit to a reasonable level as crude oil’s contribution in imports in India amounts to 37%.
Meanwhile, IMF has revised this year’s previous estimation of growth of U.S GDP from 2% to 1.7%. It has also changed its world economic stance of this year to 3.4% contrary to its older assessment of 3.5%. The director of this institution asked all central banks to sustain loose money supplies to boost the progress of the economy. IMF’s lessening of the growth projection of the global economy has also deeply impacted the price of crude oil.
Thomson Reuters/University of Michigan's preliminary consumer sentiment index witnessed a downfall of 72.3, which is 9 month low, fell well below the expectation of 78.5 in April as against 78.6 in the previous moth. Both the retail sales and core retail sales (excluding automobile sales) in the U.S. fell by 0.4% in March against the anticipation of climbing up of 0.1%. These two indices witnessed 1 % elevation in February.
The U.S. producer price index also saw the drop of 0.6% in March, well below the projection of 0.2% fall where as it saw the increasing of 0.7% in the February. A little consolation is that the core producer price index in March sustained the February month’s increased level of 0.2% as per the forecast of experts. All these releases hit the crude price hard and will likely pull it down. More over, attention should be paid to the events in the Korean peninsula region, as efforts to prevent, a likely war between North Korea and South Korea, are going on. Any negative news comes out of this region may severely hit the prices of crude oil. India may derive benefit out of a fall in crude oil prices as it is the largest importer of crude oil. The shrinking of crude oil prices may help it to reduce the current account deficit to a reasonable level as crude oil’s contribution in imports in India amounts to 37%.