Crude dips as IMF cuts global growth forecast

Published 01/23/2013, 01:01 PM
Updated 01/23/2013, 01:02 PM
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Investing.com - Crude oil futures dipped in U.S. trading on Wednesday after the International Monetary Fund trimmed its 2013 growth forecast.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in March traded at USD96.37 a barrel on Wednesday, down 0.32%, off from a session high of USD96.91 and up from an earlier session low of USD96.21.

The International Monetary Fund earlier cut its global growth forecast to 3.5% for 2013 from a 3.6% forecast made in October, which sent oil prices falling on sentiment the world's economy will need less fuels and energy to operate.

Official and industry data on U.S. weekly stockpiles are due for release this week, and talk inventories may be on the rise pushed down prices as well.

Elsewhere, the U.S. dollar rose after the Bank of Canada said it left interest rates unchanged and said rate hikes would likely be delayed on concerns headwinds face the global economy.

Investors snapped up safe-haven greenbacks on the news, and a stronger U.S. currency makes oil less of a bargain in dollar-denominated exchanges.

Meanwhile, fiscal worries in the U.S. kept prices at bay as well.

Uncertainty still remains over how lawmakers will come to agreement to lift the government's USD16.4 trillion debt ceiling.

Republican leaders in the House of Representatives have said they intend pass legislation that will give the government room to borrow for another three to four months, though fears political brinkmanship will return when time comes to address longer-term spending reforms kept investors away from oil on Wednesday.

Elsewhere on the ICE Futures Exchange, Brent oil futures for March delivery were up 0.43% at USD112.91 a barrel, up USD16.54 from its U.S. counterpart.








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