Crude prices below $80 in Asian trade
Friday, 5 October 2007
SINGAPORE, Oct 4 (AFP): Crude prices fell in Asian trade today, sinking below the key $80 a barrel level, partly on concerns over slower US growth, dealers said.
Prices eased despite a weekly report that revealed an unexpected drop in key US inventories ahead of the northern hemisphere winter.
At 11:16 am (0316 GMT) New York's main contract, light sweet crude for November delivery, dropped 23 cents to 79.71 US dollars a barrel.
Brent North Sea crude for November delivery lost 28 cents to 76.91 dollars.
The US Department of Energy's (DoE) weekly report released Wednesday showed stockpiles of distillates, including heating fuel, unexpectedly dropped by 1.2 million barrels to 135.9 million barrels during the week ended September 28.
Industry analysts had forecast a rise of 1.3 million barrels. Crude oil rose by 1.2 million barrels last week, the report showed. Most analysts had expected oil reserves to fall. "The oil prices have receded from recent highs,"
David Moore, a commodity strategist with the Commonwealth Bank of Australia in Sydney. "Now it's more of gradual drift down," he said.
US crude prices hit a record 84.10 dollars in September, while London's Brent contract surged to a record high of 81.05 dollars per barrel last Friday on concerns over global oil supplies.
Worries over the US economy were one factor behind the price decline Thursday, said Moore.
Citigroup analyst Tim Evans said earlier that with crude having climbed above 80 dollars in a short space of time, the market would need to see a significant supply disruption to extend the upside for prices.
Evans pointed out that output of the Organisation of the Petroleum Exporting Countries (OPEC) has been rising steadily in recent weeks and the cartel has agreed to an official output increase of 500,000 barrels per day, effective November 1.
Prices eased despite a weekly report that revealed an unexpected drop in key US inventories ahead of the northern hemisphere winter.
At 11:16 am (0316 GMT) New York's main contract, light sweet crude for November delivery, dropped 23 cents to 79.71 US dollars a barrel.
Brent North Sea crude for November delivery lost 28 cents to 76.91 dollars.
The US Department of Energy's (DoE) weekly report released Wednesday showed stockpiles of distillates, including heating fuel, unexpectedly dropped by 1.2 million barrels to 135.9 million barrels during the week ended September 28.
Industry analysts had forecast a rise of 1.3 million barrels. Crude oil rose by 1.2 million barrels last week, the report showed. Most analysts had expected oil reserves to fall. "The oil prices have receded from recent highs,"
David Moore, a commodity strategist with the Commonwealth Bank of Australia in Sydney. "Now it's more of gradual drift down," he said.
US crude prices hit a record 84.10 dollars in September, while London's Brent contract surged to a record high of 81.05 dollars per barrel last Friday on concerns over global oil supplies.
Worries over the US economy were one factor behind the price decline Thursday, said Moore.
Citigroup analyst Tim Evans said earlier that with crude having climbed above 80 dollars in a short space of time, the market would need to see a significant supply disruption to extend the upside for prices.
Evans pointed out that output of the Organisation of the Petroleum Exporting Countries (OPEC) has been rising steadily in recent weeks and the cartel has agreed to an official output increase of 500,000 barrels per day, effective November 1.