Crude prices flat in Asian trade after profit-taking
Wednesday, 3 October 2007
SINGAPORE, Oct 2 (AFP): Crude prices were flat in Asian trade today after profit-taking on renewed concerns the US economy was slowing, which could affect oil demand, dealers said.
At 10:51 am (0251 GMT), New York's main contract, light sweet crude for November delivery, was off four cents at 80.20 US dollars per barrel.
The contract reached 80.24 dollars in late US trades Monday,when it dropped 1.42 dollars.
Brent North Sea crude for November delivery was 10 cents higher at 77.74 dollars. "We are seeing some profit-taking emerging which has taken the edge off prices," said David Moore, a commodity strategistwith the Commonwealth Bank of Australia in Sydney.
Recently published home sales and consumer confidence figures have raised concerns about the prospects for the US economy, which has been hit by a credit crunch.
Sales of new US homes slid 8.3 per cent in August to their lowest level in seven years, while a key survey showed USconsumer confidence had slumped to a two-year low amid weakening business and job-market conditions.
Sucden analyst Michael Davies said earlier that "fears over the credit crisis in the US and renewed concerns that high energy prices could dent growth put some pressure on global equities and oil prices, especially after poor economic data in the US last week.
The US is the world's biggest energy consumer after Asian powerhouse China, raising the prospect of falling global oil demand if US economic growth slows.
But it was difficult to predict whether crude prices will rise or fall further, said Moore.
"You cannot rule out the possibility it will go higher," he said. "On the other hand, oil prices are very high by historical standards."
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.
At 10:51 am (0251 GMT), New York's main contract, light sweet crude for November delivery, was off four cents at 80.20 US dollars per barrel.
The contract reached 80.24 dollars in late US trades Monday,when it dropped 1.42 dollars.
Brent North Sea crude for November delivery was 10 cents higher at 77.74 dollars. "We are seeing some profit-taking emerging which has taken the edge off prices," said David Moore, a commodity strategistwith the Commonwealth Bank of Australia in Sydney.
Recently published home sales and consumer confidence figures have raised concerns about the prospects for the US economy, which has been hit by a credit crunch.
Sales of new US homes slid 8.3 per cent in August to their lowest level in seven years, while a key survey showed USconsumer confidence had slumped to a two-year low amid weakening business and job-market conditions.
Sucden analyst Michael Davies said earlier that "fears over the credit crisis in the US and renewed concerns that high energy prices could dent growth put some pressure on global equities and oil prices, especially after poor economic data in the US last week.
The US is the world's biggest energy consumer after Asian powerhouse China, raising the prospect of falling global oil demand if US economic growth slows.
But it was difficult to predict whether crude prices will rise or fall further, said Moore.
"You cannot rule out the possibility it will go higher," he said. "On the other hand, oil prices are very high by historical standards."
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.