Demand for oil, or return to the lingering concerns of vulnerable

to continue trading after the 5.75 percent decline yesterday, the Asian time continuation of New York crude oil futures Vulnerable. The latest U.S. manufacturing index to a decline in the real economy recession showed that the risk of dependence, once again dealt a blow to investors in the United States in the future energy needs confidence.

Industry also believes that the demand situation, OPEC as a major supplier of oil to the guiding role will be very limited.

Demand worries linger

As of 19:30 Beijing time yesterday, the New York Mercantile Exchange (NYMEX) crude oil futures contract in December reported that 64.10 U.S. dollars / barrel, up 0.26 U.S. dollars. In Monday trading floor, the settlement of the contract price down 3.9 U.S. dollars, a drop of 5.75 percent, to 63.91 U.S. dollars reported / barrel. ICE on the same day in December Brent crude futures down 4.84 U.S. dollars, the rate reached 7.41% to settle at 60.48 U.S. dollars / barrel.

While the S & P 500 Index and the Nasdaq index since Oct. 28 rebound margin were accumulated since more than 13% and 14%. But the real economy there is still the risk of making energy investors lack confidence in the performance of oil prices in the future.

The Institute for Supply Management (ISM) released the latest in October manufacturing index fell to the lowest level for 26 years. JP Morgan Chase announced by the world's manufacturing purchasing managers index (PMI) in the same period also fell to a record low, and shrinking for the fifth consecutive month.

Adverse macro-economic environment brought about by the impact of energy consumption data in the United States to keep the "spread." According to the U.S. Department of Energy under the Energy Information Administration (EIA) data showed that U.S. gasoline demand over the past four weeks was 8,930,000 barrels per day, representing a reduction of 3.4 percent over the same period last year. In addition, the United States as of Oct. 24 when the week's data on crude oil imports fell 831,000 barrels per day, the first two weeks were 1,062,000 barrels per day and 1,452,000 barrels.

Goldman Sachs in a report released recently said that unless fundamental economic conditions turn for the better, otherwise the current naphtha and gasoline refining business pressure is likely to continue over the next few months, which will continue to be severely suppressed refinery profits and may force the United States Refinery shut down part of the production capacity. Reuters survey, analysts expected Wednesday to announce the U.S. crude oil stocks last week will be on October 24 the week increased by 500,000 barrels on the basis of an additional 1,100,000 barrels.

In addition to the adverse economic environment brought about by the demand for crude oil worries, the market desire for a little macro news to the U.S. dollar continued strength of oil prices is also suppressed. As of 19:30 Beijing time yesterday, the dollar index was reported at 86.223, still in the high since 2006.

Topix futures analyst Lin Hui of the view that the dollar continued to firm, so that international oil prices remain under pressure, coupled with the upcoming U.S. presidential election results, Obama won a greater rate, the oil market is also a certain pressure on the market outlook is expected to remain There may be a low period.

OPEC production is expected to

In order to curb the continuous decline in oil prices, global crude oil production accounted for 40% of the OPEC in the Oct. 24 passed a resolution in November will start to cut daily output of crude oil to 1,500,000 barrels per day.

Reuters results of a survey published in the past 10 months, OPEC crude supply fell for the second consecutive month, to 32,230,000 barrels per day, which is lower than in September of 32,340,000 barrels per day. The main reason is that Saudi Arabia and Iran to cut production, equipment maintenance, as well as suppression of the UAE's crude oil supply. OPEC members in November in the latest oil supply is the goal of 27,300,000 barrels per day.

The organization of the next meeting will be held on December 14 held in Algeria. Japan Co., Ltd. Gang Teng Wei HUANG Han senior adviser told reporters that despite the oil price remains in the doldrums, but demand for adverse conditions, OPEC continues to cut oil prices probably will not have a substantial supporting role. On the other hand, in order to maintain the current level of oil revenues, OPEC is unlikely to risk reduction, possibly through increased access to a reasonable level of income.