Crude Oil Ends Lower On Supply Outlook; Sheds 1.8% For Week

(RTTNews) - U.S. crude oil pared losses but still ended lower Friday, on demand growth concerns with U.S. crude stockpiles surging four times than expected last week and the International Energy Agency raising its supply forecast while lifting its demand outlook for 2013.

For the week, oil futures shed 1.8 percent.

Investors also weighed ongoing U.S. government shutdown and the looming debt ceiling deadline, with both Republicans and Democrats in talks to find a solution to the issues. Late Thursday, a meeting between President Barack Obama and the House Republican leaders failed to break the deadlock, but agreed to keep the dialogue going towards a solution.

Earlier today, the International Energy Agency (IEA) in its monthly Oil Market Report, lifted its 2013 forecast by 90,000 barrels per day to 91.0 million barrels per day based on the recent strength in the demand.

The IEA increased its forecast for non-OPEC supply growth next year to an average of 1.7 million barrels a day, up 360,000 barrels a day from the estimate in May medium-term oil-market report. Such a supply rise would mark the highest annual growth since the 1970s. Although supplies from the Organization of the Petroleum Exporting Countries fell to its lowest since October 2011, the IEA expects non-OPEC producers to make up the shortfall.

Light Sweet Crude Oil futures for November delivery, the most actively traded contract, dropped $0.99 or 1.0 percent to close at $102.02 a barrel on the New York Mercantile Exchange Friday.

Crude prices for November delivery scaled a high of $102.95 a barrel intraday and a low of $100.60.

Yesterday oil settled higher on supply concerns after developments in Libya and the Organization of the Petroleum Exporting Countries lifting its global oil demand forecast. Investors also weighed the possibility of a deal that would temporarily raise the debt ceiling in the U.S.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 80.37 on Friday, down from 80.43 late Thursday in North American trade. The dollar scaled a high of 80.54 intraday and a low of 80.24.

The euro traded higher against the dollar at $1.3551 on Friday, as compared to its previous close of $1.3520 late Thursday in North America. The euro scaled a high of $1.3581 intraday and a low of $1.3519.

In economic news, a Thomson Reuters and University of Michigan report showed U.S. consumer sentiment to have deteriorated in October, reflecting the impact of the ongoing government shutdown. A preliminary reading on the index for October came in at 75.2 compared to the final September reading of 77.5. The index declined for the third consecutive month, at its lowest level since January.

From the eurozone, Germany's EU harmonized inflation stayed unchanged in September as estimated earlier, final figures released by the Federal Statistical Office showed. The harmonized index of consumer prices (HICP) increased 1.6 percent year-on-year in September, which was unchanged from the growth rate seen in August. The September outcome was also in line with the preliminary estimates.

Meanwhile, Germany's wholesale prices declined for the second consecutive month in September, official data showed. Wholesale prices declined 2.2 percent year-on-year in September, which was the biggest fall since November 2009, Destatis said. The decline was faster than the 1.7 percent fall seen in August.