Crude oil prices have bounced off 21-month low on profit-taking on short positions after the IEA cut its oil demand forecasts for 2008 and 2009 by 330 kb/d and 670 kb/d respectively, in response to gathering economic weakness. The IEA report was widely rumoured in recent sessions and priced in following bleak assessment from the IMF. Focus today turns to the US weekly inventory data, where
oil analysts are forecasting builds across the board -- crude oil stocks up 1.0 million barrels. Elsewhere, the Dec Brent crude oil contract expires today. WTI Nymex crude oil trades at $56.10, down 6 cents and Dec Brent crude oil trades at $51.90.