Oil Market Update – October 2012

Oil prices weaken in October but remain quite high. Attention now shifting towards the Asian economies, which have surprised markets on the downside in recent months. Near-term forecasts lifted on geo-political risk, 2013 forecasts left unchanged.

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  • Oil prices weaken in October but remain quite high; Brent held up due to geo-political risk and supply outages, WTI relatively weaker on larger-than expected build up in inventories.
  • Attention now shifting towards the Asian economies, which have surprised markets on the downside in recent months and where demand projections have scope to be lowered in the coming months.
  • Slowdown in Asia evident with IEA and OPEC revising down global growth forecasts through 2013, Chinese apparent demand continues to pull back through late 2012
  • Near-term forecasts lifted on geo-political risk, 2013 forecasts left unchanged.

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