Oil prices remain at the mercy of macroeconomic histrionics, a feature we expect to persist" over the coming weeks. If the macroeconomic pessimism ratchets higher, oil prices could take another lurch down, especially if the shape and strength of the global recovery is once again put into question.
In terms of oil demand itself, while the cyclical rebound is drawing to a close, underlying demand indications are far from worrisome with emerging market growth still robust.
Traders are speculating that energy demand could be hit in the European countries battered by the debt crisis, although this should be partly offset by tight supplies.
The International Energy Agency on Wednesday warned that the oil market needed more supplies for the third quarter of 2011, despite increased Opec production and its own emergency stock release last month. On June 23, the IEA authorised an emergency drawdown of its member nations' strategic oil stockpiles to replace lost output from Libya and to give the global economy relief from soaring energy prices.
The Organisation of Petroleum Exporting Countries (Opec), whose members include Saudi Arabia, Venezuela and Angola, pumps about 40 percent of the world's oil supplies.
By Friday on London's Intercontinental Exchange, Brent North Sea crude for delivery in September stood at $117.25 a barrel, which compared with $117.60 a week earlier for the August contract.
On the New York Mercantile Exchange, West Texas Intermediate (WTI) or light sweet crude for August rose to $97.29 a barrel from $96.27 the previous week. For the latest updates PRESS CTR + D or visit Stock Market news Today
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