Mixed day for crude oil market

15 May 2009

Conflicting economic data brought a mixed day on the oil markets on Thursday as prices continued to hover below $60 (£40) a barrel.

US crude for June delivery rose 60 cents to close at $58.62 a barrel, but London Brent crude - which expired at the end of trading - settled down 65 cents at $56.69.

Prices were boosted by a strong day on the US equities markets as traders continued to look to stocks for signs of a potential economic recovery.

However, any gains were tempered by a new report from the International Energy Agency which forecast that world oil consumption will undergo the biggest decline this year since 1981.

This could be good news for home heating oil customers, as a continued lack of demand for crude could help ensure that prices remain reasonably low in the coming months.

Opec's latest monthly oil market report, released earlier this week, also predicted that oil consumption will fall further during the remainder of 2009 to average around 84 million barrels a day.

It claimed that market fundamentals are "far from balanced", despite the recent rally that saw prices reach six-month highs this week.

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