Japan Growth Forecasts Oil Drops in New York on Report That IMF Cut U.S : Japan Growth Forecasts Oil Drops Oil fell from a 30-month high after a German government official said the International Monetary Fund cut its growth forecasts for the U.S. and Japan, indicating high oil prices pose a risk to global economic expansion.
Crude tumbled as much as 1.1 percent on the report that the IMF’s World Economic Outlook will state that deficit reduction strategies in the U.S. and Japan lack credibility. The official spoke on condition of anonymity because the report will be published in Washington later today.
“The IMF announcement earlier today clearly engendered some downward price pressure across a number of financial markets, including crude oil,” said Jason Schenker, president of Prestige Economics, an energy advisory firm in Austin, Texas. “We’re looking at pretty solid global growth, it’s just a deceleration of growth.”
Oil for May delivery fell 70 cents, or 0.6 percent, to $112.09 a barrel at 9:25 a.m. on the New York Mercantile Exchange. Futures settled at $112.79 a barrel on April 8, the highest closing price since Sept. 22, 2008. Prices have risen 32 percent in the past year.
Brent oil for May settlement dropped 66 cents, or 0.5 percent, to $125.99 a barrel on the ICE Futures Europe exchange in London. Futures earlier touched $127.02, the highest price since Aug. 1, 2008, after surging 6.7 percent last week.
Brent crude declined as much as 1.6 percent in London after the African Union said Libyan leader Muammar Qaddafi agreed to a cease-fire plan, fueling speculation that exports from the North African nation may recover.
Libyan Negotiations
“The markets came off a bit, but it’s unclear as to whether this agreement is going to happen,” said Tom Bentz, a broker with BNP Paribas Commodity Futures Inc. in New York. “It seems to me that we’re going to need to see an end to some of the violence in Libya before paying attention to other things.”
The union of African states said in a statement today that Qaddafi agreed to “the immediate cessation of all hostilities” and to negotiations “with the view to adopting and implementing the political reforms necessary for the elimination of the causes of the current crisis.”
South African President Jacob Zuma presented Qaddafi with the cease-fire plan yesterday, which also calls for cooperation in delivering humanitarian aid and protecting foreign nationals in Libya. The AU delegation will meet today with rebel leaders in Benghazi, their stronghold in the east.
Crude tumbled as much as 1.1 percent on the report that the IMF’s World Economic Outlook will state that deficit reduction strategies in the U.S. and Japan lack credibility. The official spoke on condition of anonymity because the report will be published in Washington later today.
“The IMF announcement earlier today clearly engendered some downward price pressure across a number of financial markets, including crude oil,” said Jason Schenker, president of Prestige Economics, an energy advisory firm in Austin, Texas. “We’re looking at pretty solid global growth, it’s just a deceleration of growth.”
Oil for May delivery fell 70 cents, or 0.6 percent, to $112.09 a barrel at 9:25 a.m. on the New York Mercantile Exchange. Futures settled at $112.79 a barrel on April 8, the highest closing price since Sept. 22, 2008. Prices have risen 32 percent in the past year.
Brent oil for May settlement dropped 66 cents, or 0.5 percent, to $125.99 a barrel on the ICE Futures Europe exchange in London. Futures earlier touched $127.02, the highest price since Aug. 1, 2008, after surging 6.7 percent last week.
Brent crude declined as much as 1.6 percent in London after the African Union said Libyan leader Muammar Qaddafi agreed to a cease-fire plan, fueling speculation that exports from the North African nation may recover.
Libyan Negotiations
“The markets came off a bit, but it’s unclear as to whether this agreement is going to happen,” said Tom Bentz, a broker with BNP Paribas Commodity Futures Inc. in New York. “It seems to me that we’re going to need to see an end to some of the violence in Libya before paying attention to other things.”
The union of African states said in a statement today that Qaddafi agreed to “the immediate cessation of all hostilities” and to negotiations “with the view to adopting and implementing the political reforms necessary for the elimination of the causes of the current crisis.”
South African President Jacob Zuma presented Qaddafi with the cease-fire plan yesterday, which also calls for cooperation in delivering humanitarian aid and protecting foreign nationals in Libya. The AU delegation will meet today with rebel leaders in Benghazi, their stronghold in the east.
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