WTI gains by 0.51% and rose to $95.71 amid the expectation of fall in crude oil inventories. Energy Information Administration will release inventory data tomorrow. In fact the inventory is likely to increase by 0.7 million barrels for the week ended 18th January. We may see down fall after the data release.
According to the International Energy Agency monthly report world oil consumption will increase by 1.3 million barrels a day, to the record high of 92.5 million this year on improving U.S. and Euro economies. But on the other side consumption at China, world second largest oil consumer is expected to fall this year with falling GDP rate. China accounts for 11% of global oil consumption. According to Bloomberg China crude oil demand expected to decelerate to 4% in 2014 from 12.6% gain in 2010.
At global level crude oil production is expected to outpace demand in this year. Overall we may see crude oil prices under downside pressure. We are expecting that increase in crude oil inventory may fall prices to $94.70 tomorrow.