Oil prices drop before US data

Oil prices fell slightly on Wednesday as the market geared up for the release of key data on US energy stockpiles ahead of an OPEC weekend meeting to discuss output levels
In London, Brent North Sea crude for delivery in April fell 37 cents to 43.59 dollars a barrel.
New York's main futures contract, light sweet crude for April, dropped 52 cents to 45.19 dollars.
The US Department of Energy (DoE) on Wednesday releases its latest weekly update on energy inventories in the United States, the world's biggest oil consuming nation.
"We would certainly pay close attention to crude stocks and refinery runs, following a sharp rise in (US) refinery capacity" in last week's data, VTB Capital analyst Andrey Kryuchenkov said.
"There is a slim chance for a small (fall) in crude inventories, provided runs remain near the same levels as the previous week."

Even though US refineries are working harder, DoE data released on Tuesday projected average annual world oil consumption will decline by almost 1.4 million barrels per day in 2009.
Meanwhile, ministers of the Organization of Petroleum Exporting Countries (OPEC), the cartel that pumps about 40 percent of world crude, meet Sunday in Vienna to discuss whether to slash output in a bid to shore up prices.
"Right now the message out of OPEC is mixed," said Victor Shum, senior principal at energy consultancy Purvin and Gertz in Singapore.
"I think what is likely to happen is that there will be a lot of comments to stick to full compliance (with) output cuts that have been planned and there will not be further cuts," he told AFP.
"At the time they meet, if pricing is really below 40 dollars, that will give OPEC more reason to cut output," Shum added.
Some analysts said the market still believed that the OPEC cartel had not done enough to check falling prices.
"As we approach the March OPEC meeting, crude oil markets appear to be in much better balance than the last time OPEC met and this is due in no small part to the excellent compliance by OPEC members with the lower quotas agreed at the December meeting," said Nic Brown of Natixis.
"Does this mean that OPEC has done enough? We suspect not," Brown added.
OPEC agreed late last year to reduce output by 4.2 million barrels a day in a bid to reverse tumbling prices and protect its members' revenues.
Oil prices have fallen from record highs of more than 147 dollars in July 2008 as the global economic crisis has weakened demand.


[SigmaForex Customer Support Area]

Customer satisfaction is number 1

It's a well known fact that no business can exist without satisfied customers, Sigma support you with all your needs that have been chosen according to your demands.
Our slogan is to achieve the maximum level of satisfaction for our customers for that we built customer support which is availble 24/7 to be reached for all clients at any time.

Open Live Chat Now

Email Us

FAQs

Funding Methods

Withdrwal Methods

Trading Agreement