Crude oil prices higher in Asian trade
Friday, 24 August 2007
SINGAPORE, Aug 23 (AFP): Oil prices were higher in Asian trade today as global financial markets recovered, easing concerns of faltering economic growth which could lead to lower demand for crude, dealers said.
New York's main contract, light sweet crude for October delivery raised 31 cents to 69.57 US dollars from 69.26 in late US trades Wednesday.
Brent North Sea crude for October delivery gained 16 cents to 68.86 dollars.
"The financial markets appear to regain some level of stability and the crude commodity market is reacting to that," said Victor Shum, a Singapore-based analyst with energy consultancy Purvin and Gertz.
There had been fears that the global financial turbulence whipped by a crisis in the US subprime mortgage market could slowdown economies worldwide and dent demand for oil.
Shum said a delay in the delivery of Mexican crude oil to the United States because of Hurricane Dean has also helped push prices higher.
The US Department of Energy (DoE) said Wednesday that American crude inventories rose by 1.9 million barrels in the week ended August 17, beating analysts' consensus forecasts for a drop of 2.75 million barrels.
Some analysts had interpreted the data as showing that US crude oil demand was falling, prompting some investment funds to exit the oil market.
The DoE said that US gasoline, or petrol, reserves sank by 5.7 million barrels-larger than market expectations of a drop of 800,000 barrels-but the decline had little effect on the market as the US summer driving season is nearly coming to an end.
The weather remains a key factor for oil prices, as September is the peak hurricane season in the United States, analysts said. US oil production facilities in the Gulf of Mexico can be threatened by the storms.
Another report from Vienna adds: There will be no shortage of crude oil supply in the next five years worldwide although the international oil prices keep increasing, European Union's (EU) energy commissioner said yesterday on a forum in Austria's west city of Alpbach.
Andris Piebalgs, energy commissioner of the EU, predicted the international oil prices might rise to 80 US dollars per barrel.
"However, we would not hereby believe that the shortage of the world crude oil supply would come in the next five years," Piebalgs said.
He also said EU has got along well with OPEC on energy cooperation and the oil cartel promised sufficient supply to EU.
International crude oil prices have been on the rise as global economic activities surged over the last few years, and volatile situations in some oil- exporting countries added to the concerns over a possible shortage of oil supply.
New York's main contract, light sweet crude for October delivery raised 31 cents to 69.57 US dollars from 69.26 in late US trades Wednesday.
Brent North Sea crude for October delivery gained 16 cents to 68.86 dollars.
"The financial markets appear to regain some level of stability and the crude commodity market is reacting to that," said Victor Shum, a Singapore-based analyst with energy consultancy Purvin and Gertz.
There had been fears that the global financial turbulence whipped by a crisis in the US subprime mortgage market could slowdown economies worldwide and dent demand for oil.
Shum said a delay in the delivery of Mexican crude oil to the United States because of Hurricane Dean has also helped push prices higher.
The US Department of Energy (DoE) said Wednesday that American crude inventories rose by 1.9 million barrels in the week ended August 17, beating analysts' consensus forecasts for a drop of 2.75 million barrels.
Some analysts had interpreted the data as showing that US crude oil demand was falling, prompting some investment funds to exit the oil market.
The DoE said that US gasoline, or petrol, reserves sank by 5.7 million barrels-larger than market expectations of a drop of 800,000 barrels-but the decline had little effect on the market as the US summer driving season is nearly coming to an end.
The weather remains a key factor for oil prices, as September is the peak hurricane season in the United States, analysts said. US oil production facilities in the Gulf of Mexico can be threatened by the storms.
Another report from Vienna adds: There will be no shortage of crude oil supply in the next five years worldwide although the international oil prices keep increasing, European Union's (EU) energy commissioner said yesterday on a forum in Austria's west city of Alpbach.
Andris Piebalgs, energy commissioner of the EU, predicted the international oil prices might rise to 80 US dollars per barrel.
"However, we would not hereby believe that the shortage of the world crude oil supply would come in the next five years," Piebalgs said.
He also said EU has got along well with OPEC on energy cooperation and the oil cartel promised sufficient supply to EU.
International crude oil prices have been on the rise as global economic activities surged over the last few years, and volatile situations in some oil- exporting countries added to the concerns over a possible shortage of oil supply.