Oil steady despite weak demand data

17/03/2009

Crude prices have remained broadly stable during trading in New York today (March 17th).

Following a $1.10 (78.65p) surge yesterday that took April delivery crude to a closing price of $47.35 on the New York Mercantile Exchange (Nymex), the commodity has lost 21 cents so far today, retreating from a high of $48.02 a barrel.

Heating oil futures also gained 1.58 cents yesterday, with the April delivery Nymex heating oil contract settling at $1.213 a gallon.

Yesterday's rally came as the market took stock of the Organisation of the Petroleum Exporting Countries (Opec's) decision not to squeeze supply any further, with analysts anticipating that the imbalance between production and consumption that has pervaded in recent months may be remedied soon as previous Opec cuts take effect.

Looking forward, Mark Pervan, a senior commodities analyst at ANZ Bank, told Reuters: "With supply issues off the table for the next three to four weeks, demand issues issues will again dominate sentiments, with high chance of disappointing the market."