Brokerage firm Nirmal Bang expects demand for crude oil to improve slightly in 2013 following lower growth in 2012 on account of muted economic recovery.
Demand is expected to grow by 1 mpbd or 0.9 percent approximately on a year-on-year (y-o-y) basis in 2013 compared to a fall of 0.4 percent last year. Demand may grow mainly from the emerging markets (non-OECD nations), the brokerage expects.
Combined efforts from all the major central bankers such as US, China, Japan and ECB have resulted in stable economic conditions.
In the first half of 2013, the brokerage expects demand from Non-OECD nations to rise further especially from China followed by Japan and India. It expects oil prices to remain stable in the coming quarter.
The brokerage has expressed a neutral to bullish view for crude oil price during the first half of 2013, supported by improving oil demand and slight recovery in the global economy. It anticipates oil prices to remain in the range of $93 – $97/barrel in the near term.
But the brokerage expects demand from Oil demand in Organization for Economic Cooperation and Development (OECD) nations to remain weak in 2013. Major oil consumers such as the US and Europe are constantly showing a fall in demand figures. US, the top consumer of crude oil, has witnessed a fall of 2.09 percent in 2012 as compared to the previous year and a further fall of 0.5 percent is expected in 2013, the brokerage firm said in a report.
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