Commodity Daily News

Crude Down for 6 Day as U.S Data Raises Demand Concerns

Crude Oil prices declined more than 4% Wednesday to a 7 week low, falling for the 6th straight session, as U.S. oil inventories dropped 2.9 million barrels to 347.3 million last week, the lowest since January, an Energy Department report showed yesterday. The losing streak is the longest since the 6 sessions ended on Dec. 5. Crude has now slumped 14% this month, as investors question whether supply-and-demand fundamentals are sufficient to justify Oil's recent rally above $70 a barrel.

The Organization of the Petroleum Exporting Countries's (OPEC) 2009 World Oil Outlook added to the gloom as it said world demand for Oil may take years to recover from the slump in 2009 because of economic weakness and demand destruction.
The cartel said consumption of its crude would not return to 31 million barrels per day (bpd), the level it averaged in 2008, until 2013.