Oil near nine-month high

Higher demand forecasts support oil price.

Higher demand forecasts support oil price.

Wed, Feb 13, 2013, 00:00

Brent crude steadied on this morning, holding just below a nine-month high near $119 (€85) per barrel on forecasts for faster-than-expected growth in global oil demand this year, with easing tensions in Iran helping to subdue prices.

The US Energy Information Administration (EIA) and the 12-member Organization of the Petroleum Exporting Countries increased their outlook for world oil consumption growth, citing increasing signs of a recovery in the global economy.

Investors are also taking cues from the currency markets, which are awaiting a meeting of G20 finance ministers and central bankers this week amid increasing international tensions over the euro's strength and the yen's weakness.

"The faster demand forecasts are supporting oil prices, but the concerns of a currency war are weighing on the markets," said Ker Chung Yang, senior commodity analyst at Philips Futures in Singapore.

Front month Brent futures shed 10 cents to trade at $118.56 per barrel in early day trade. It touched a high of $118.75 earlier in the session, around 40 cents away from a nine-month high of $119.17 hit last week.

US crude rose 12 cents to $97.63 per barrel.


Sign In

Forgot Password?

Sign Up

The name that will appear beside your comments.

Have an account? Sign In

Forgot Password?

Please enter your email address so we can send you a link to reset your password.

Sign In or Sign Up

Thank you

You should receive instructions for resetting your password. When you have reset your password, you can Sign In.

Hello, .

Please choose a screen name. This name will appear beside any comments you post. Your screen name should follow the standards set out in our community standards.

Thank you for registering. Please check your email to verify your account.

We reserve the right to remove any content at any time from this Community, including without limitation if it violates the Community Standards. We ask that you report content that you in good faith believe violates the above rules by clicking the Flag link next to the offending comment or by filling out this form. New comments are only accepted for 3 days from the date of publication.