Oil prices fall further

Oil prices fell for a second day running yesterday after OPEC presented a downbeat outlook for world crude demand and amid concerns about slowing growth in China, the world's second-biggest economy, analysts said. Brent North Sea crude for delivery in July shed $ 1.40 to stand at $ 102.55 in late London deals. New York's main contract, West Texas Intermediate (WTI) light sweet crude for delivery in July, slipped 85 cents to $ 94.92 a barrel. "Oil prices have slid back after OPEC increased crude output in May while at the same time keeping its 2013 demand forecast unchanged on concerns about the demand outlook," said Michael Hewson, senior analyst at traders CMC Markets UK. The Organization of Petroleum Exporting Countries (OPEC) yesterday said it expected world demand this year to reach 89.65 million barrels per day (mbpd), a slight drop from the forecast of 89.66 mbpd in its previous monthly report. This would represent a rise of 780,000 bpd from 2012 oil demand, said the organization which pumps about 35 percent of the world's crude. Most of the increased demand is due to China and other countries not in the OECD club of advanced economies. But OPEC warned "the current forecast is subject to downward revisions not only in the OECD but also in emerging economies". Oil prices had already fallen on Monday following poorly-received Chinese figures. Sucden brokers analyst Kash Kamal, based in London, said that "disappointing Chinese data out over the weekend has provided resistance to the possibility of short term gains". In Sydney, CMC Markets strategist Michael McCarthy told AFP that dealers were "trying to get their heads around China and its import and export data". The Asian power has published a series of lukewarm economic indicators, sparking concerns about slower growth in China, the world's biggest energy consumer. On Saturday, the country reported a slowdown in exports in May compared to the previous month, and an unexpected drop in imports. The Chinese government a day later announced that industrial output expanded at a slightly slower pace in May while big-ticket investment growth eased. The figures come amid growing concern over the outlook for China's economy, which grew 7.8 percent in 2012, its worst performance in 13 years. Traders were also watching developments between Sudan and South Sudan. Source: ArabNews