Crude prices higher in Asia over storm fears, weak US dollar
Friday, 28 September 2007
SINGAPORE, Sept 27 (AFP): Crude prices were higher in Asia today as traders cast a wary eye on the formation of a new tropical storm in the Gulf of Mexico, dealers said.
The weak US dollar was also lending support to oil prices as foreign investors find it cheaper to invest in the dollar-denominated commodity, they said.
At 2:00 pm (0600 GMT), New York's main contract, light sweet crude for November delivery, rose 90 cents to 81.20 US dollars per barrel from 80.30 dollars in late US trades Wednesday.
Brent North Sea crude for November delivery was 60 cents higher at 78.03 dollars per barrel.
Prices had initially declined in US trading hours Wednesday after a surprise rise of 1.8 million barrels in US crude reserves but the formation of a new tropical storm kept the market nervous, dealers said.
"Oil markets were also monitoring weather developments, including a storm in the Atlantic and a depression in the Gulf of Mexico," analysts from the Commonwealth Bank of Australia said.
Traders fear storms could affect key oil production which would strain supplies ahead of the coming winter season.
The US Department of Energy said Wednesday that crude inventories had jumped by 1.8 million barrels in the United States-the world's biggest consumer of energy-during the week ended September 21.
Heating oil stocks rose by 700,000 barrels but are still below levels seen over the past few years.
Meanwhile, the weak US currency was also bolstering crude prices, dealers said.
"The broad weakness in the greenback continues to support oil prices, with most dollar-denominated commodities benefiting from a weaker dollar, as they become relatively cheaper for foreign investors," said Sucden analyst Andrey Kryuchenkov.
The US dollar fell to a new all-time low of 1.4162 against the euro Wednesday on growing concerns over the United States economy.
In afternoon Asian trading Thursday, the dollar was at 1.4139 to the euro compared with 1.4125 in late US trades Wednesday.
The weak US dollar was also lending support to oil prices as foreign investors find it cheaper to invest in the dollar-denominated commodity, they said.
At 2:00 pm (0600 GMT), New York's main contract, light sweet crude for November delivery, rose 90 cents to 81.20 US dollars per barrel from 80.30 dollars in late US trades Wednesday.
Brent North Sea crude for November delivery was 60 cents higher at 78.03 dollars per barrel.
Prices had initially declined in US trading hours Wednesday after a surprise rise of 1.8 million barrels in US crude reserves but the formation of a new tropical storm kept the market nervous, dealers said.
"Oil markets were also monitoring weather developments, including a storm in the Atlantic and a depression in the Gulf of Mexico," analysts from the Commonwealth Bank of Australia said.
Traders fear storms could affect key oil production which would strain supplies ahead of the coming winter season.
The US Department of Energy said Wednesday that crude inventories had jumped by 1.8 million barrels in the United States-the world's biggest consumer of energy-during the week ended September 21.
Heating oil stocks rose by 700,000 barrels but are still below levels seen over the past few years.
Meanwhile, the weak US currency was also bolstering crude prices, dealers said.
"The broad weakness in the greenback continues to support oil prices, with most dollar-denominated commodities benefiting from a weaker dollar, as they become relatively cheaper for foreign investors," said Sucden analyst Andrey Kryuchenkov.
The US dollar fell to a new all-time low of 1.4162 against the euro Wednesday on growing concerns over the United States economy.
In afternoon Asian trading Thursday, the dollar was at 1.4139 to the euro compared with 1.4125 in late US trades Wednesday.