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EIA's demand data and IMF's downgrades weigh on oil price

FXStreet (Łódź) - Independent Analyst Malcolm Graham-Wood suggests that oil price slumped yesterday due to the lowering of oil demand forecasts by the EIA and IMF's downgrade of the global growth outlook.

Key quotes

"Having done all that, all the market needed was a bad set of inventory statistics but more bad news was around the corner as crude stocks added 5.1m barrels against a forecast of only 1.5m."

"Finally the ICE announced that net long positions in Brent futures and options fell by another 15%, confidence in oil going forward has rarely been so low."

"Against this background it is no surprise that oil fell again this morning and as I write is almost a dollar lower at $87.93 and $91.05 respectively."

"Having called crude down in recent months I must admit that I have been eyeing the opportunity of a rally, even a modest one but at the moment the crude market is totally friendless and so caution must prevail at least for a little longer."

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