Crude Prices Retreat on Weak Energy Demand Outlook
NEW YORK, May 16 -- Crude prices retreated on Friday on the weak outlook for global energy demand.
The International Energy Agency forecast the global oil demand would hit a 28-year low this year, saying optimism about an economic recovery was not reviving appetite for energy.
The Paris-based organization cut the global daily energy demand to 83.2 million barrels per day in its latest monthly report, 3 percent lower than last year, and "the sharpest single year's fall since 1981."
Earlier this week, the U.S. Energy Information Administration and the Organization of Petroleum Exporting Countries both lowered crude consumption forecasts.
Losses on equities markets and moderate gains in the U.S. dollar against other currencies also encouraged selling in the commodities markets.
Light, sweet crude for June delivery fell 2.28 U.S. dollars, or 3.9 percent, to settle at 56.34 a barrel on the New York Mercantile Exchange. London Brent for July fell 2.61 dollars to 55. 98 dollars a barrel. (PNA/Xinhua)
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