Oil slips after overnight surge

FE Team | Published: March 25, 2011 00:00:00 | Updated: February 01, 2018 00:00:00

SINGAPORE, Mar 24 (Commodity Online): World oil prices dipped in Asian trade Thursday after an overnight surge, as a more than expected hike in US stockpiles offset geo-political tensions, which is supporting the black gold. Light sweet crude for May delivery was seen trading at $105.39 a barrel at 1pm Singapore time, while Brent crude was at $115.37 a barrel on the ICE in London. US Energy Department Wednesday said crude inventories climbed 2.13 million barrels to 352.8 million, for a third straight week. Gasoline stockpiles dropped by 5.3 million barrels, DoE added. Analysts however said geo-political tensions and crisis in Japan will continue to influence oil for some more time and prices are set for a comeback anytime during the day. On Wednesday, oil prices rose for the third straight day amid more signs of rising demand and continued turmoil in crude exporters Libya and Yemen. April delivery gained 78 cents from Tuesday to $105.75 in New York, the highest close in two years and Brent North Sea contract added 15 cents to close at $115.55 a barrel in London. Oil in New York has advanced 15 per cent this year as turmoil that toppled the leaders of Tunisia and Egypt extended to Yemen, Bahrain and Oman.