EGX kicks off week higher on August 17    EGP inches down vs. USD at Sunday's trading close    EGX launches 1st phone app    Egypt achieves record primary budget surplus of EGP 629bn despite sharp fall in Suez Canal revenues    Escalation in Gaza, West Bank as Israeli strikes continue amid mounting international criticism    Egypt recovers collection of ancient artefacts from Netherlands    Resumption of production at El Nasr marks strategic step towards localising automotive industry: El-Shimy    Egypt harvests 315,000 cubic metres of rainwater in Sinai as part of flash flood protection measures    Egypt, UNDP discuss outcomes of joint projects, future environmental cooperation    United Bank achieves EGP 1.51bn net profit in H1 2025, up 26.9% year-on-year    After Putin summit, Trump says peace deal is best way to end Ukraine war    Egypt, Namibia explore closer pharmaceutical cooperation    Jordan condemns Israeli PM remarks on 'Greater Israel'    Renowned Egyptian novelist Sonallah Ibrahim dies at 88    Egypt's FM discusses Gaza, bilateral ties in calls with Saudi, South African counterparts    Egypt prepares to tackle seasonal air pollution in Nile Delta    Al-Sisi says any party thinking Egypt will neglect water rights is 'completely mistaken'    Egyptian, Ugandan Presidents open business forum to boost trade    Egypt's Sisi, Uganda's Museveni discuss boosting ties    Egypt's Sisi warns against unilateral Nile measures, reaffirms Egypt's water security stance    Egypt, Colombia discuss medical support for Palestinians injured in Gaza    Egypt, Huawei explore healthcare digital transformation cooperation    Egypt's Sisi, Sudan's Idris discuss strategic ties, stability    Egypt's govt. issues licensing controls for used cooking oil activities    Egypt to inaugurate Grand Egyptian Museum on 1 November    Egypt's Sisi: Egypt is gateway for aid to Gaza, not displacement    Greco-Roman rock-cut tombs unearthed in Egypt's Aswan    Egypt reveals heritage e-training portal    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







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Oil trims gains after IMF forecast
Published in Daily News Egypt on 20 - 09 - 2011

LONDON: Oil trimmed gains in choppy trading on Tuesday as the gloomy outlook for global economy came into focus once again, following the warning from International Monetary Fund (IMF).
Brent crude was $1.15 up at $110.29 a barrel by 1402 GMT. Earlier, it rose to as high as $110.99 a barrel.
US crude for October turned briefly negative and it was trading 41 cents up at $86.11. Volume was relatively thin ahead of the contract expiry later on Tuesday. The more actively traded November contract was at $86.84.
"Oil is capping some of the earlier gains today after the IMF has cut their world growth forecast — lower world growth means lower demand for oil," Thorbjørn Bak Jensen, oil analyst with Global Risk Management in Copenhagen, said.
Europe and the United States could slip back into recession next year unless they quickly tackle economic problems that could infect the rest of the world, the IMF said on Tuesday, cutting its growth forecast for the world economy.
Financial volatility had increased dramatically as investors worried about an escalating debt crisis in the euro zone and a weakening U.S. recovery, the IMF said.
Earlier in the day, oil prices rose in response to the sharp falls in the previous two sessions.
Prices had extended gains on the news that Greece, still in the centre stage of Europe's debt crisis, fully paid two bond coupons amounting to 769 million euros ($1.04 billion) that came due on Tuesday.
Refinery outages
Some bearish factors came from the European oil refining sector and Libya, said Christopher Bellew, broker with Jefferies Bache.
"Refinery turnaround have been causing some weakens in North Sea oil prices and Libyan oil seems to be coming back faster than expected," Bellew said.
Libya, a member of producer group OPEC, resumed oil production at some oilfields earlier in September and a limited volume has been offered for export.
Qatar, the smallest member of OPEC, said it was too early to say whether the group would trim production as Libya gets back on its feet.
The comment followed remarks by OPEC Secretary General Abdullah Al-Badri that producers who had increased output to make up for the shortfall from Libya will reduce production as Libya gradually comes back online.
Ahead of the release of two sets of US weekly oil data, analysts forecast on average that crude stocks would be down 1.3 million barrels for the week ended Sept. 16.
Industry group American Petroleum Institute (API) and the US Energy Information Administration (EIA) will release figures on Tuesday and Wednesday, respectively. –Additional reporting by Manash Goswami in Singapore


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