WEEKLY ENERGY REVIEW: Demand Concerns Pummel Oil Prices
Oil futures closed nearly $6 off highs for week.
Bryce Knorr
Published: Mar 11, 2009
More signs of slowing demand pressured energy prices on Wednesday, bringing the recent rally in the complex to a screeching halt. After threatening to test the $49 level early in the week, crude oil futures closed almost $6 off their highs for the week.
The market's slide began on Tuesday, when prices failed to take out Monday's highs, selling off sharply into the close after the government's short-term energy outlook predicted more weakness in demand around the world, keeping prices in check. The Energy Information Administration predicted crude would average $42.06 for 2009, with on-high retail diesel at $2.19 and gasoline at $1.96.
Crude oil Wednesday traded down to the EIA forecast, after the weekly petroleum inventory reported supplies up 700,000 barrels in the latest week, more than the 400,000 expected by analysts and in contrast to the American Petroleum Institute's forecast a drop in crude oil supplies this week of 419,000 barrels.
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