Global oil prices lower in Asian trade
Wednesday, 13 June 2007
SINGAPORE, June 12 (AFP): Oil prices were lower in Asian trade today after sharp gains overnight on fresh concerns over US gasoline (petrol) supplies, dealers said.
New York's main oil futures contract, light sweet crude for delivery in July, was 17 cents lower at 65.80 dollars a barrel after jumping 1.21 dollars to 65.97 dollars in late US trades Monday.
The price of Brent North Sea crude was not immediately available.
"I was surprised that it went up as much as it did (overnight)," said Tony Nunan, of Mitsubishi Corp's international petroleum business in Tokyo.
Prices had bounced back Monday on news Saudi Arabia was going to continue to cut back supplies through July and on comments by Iran's oil minister that there was no global crude oil shortage.
"There's no problem with crude. The problem is with products," Nunan said.
Noting that gasoline inventories have risen for the past five weeks, he said the short- to medium-term outlook is bearish and prices could trend down to 60 dollars a barrel.
US gasoline supplies remain in focus during the American summer holiday driving season when demand usually peaks.
Over the longer-term, the outlook remains bullish, Nunan said, with high geopolitical risk and worries that OPEC will probably wait for big draws in crude before adjusting the cartel's output. "There could be a danger OPEC will be behind the curve," he said, referring to the Organisation of the Petroleum Exporting Countries.
Violence in Nigeria, Africa's biggest crude producer, has disrupted the country's exports for months and lent further support to crude prices.
New York's main oil futures contract, light sweet crude for delivery in July, was 17 cents lower at 65.80 dollars a barrel after jumping 1.21 dollars to 65.97 dollars in late US trades Monday.
The price of Brent North Sea crude was not immediately available.
"I was surprised that it went up as much as it did (overnight)," said Tony Nunan, of Mitsubishi Corp's international petroleum business in Tokyo.
Prices had bounced back Monday on news Saudi Arabia was going to continue to cut back supplies through July and on comments by Iran's oil minister that there was no global crude oil shortage.
"There's no problem with crude. The problem is with products," Nunan said.
Noting that gasoline inventories have risen for the past five weeks, he said the short- to medium-term outlook is bearish and prices could trend down to 60 dollars a barrel.
US gasoline supplies remain in focus during the American summer holiday driving season when demand usually peaks.
Over the longer-term, the outlook remains bullish, Nunan said, with high geopolitical risk and worries that OPEC will probably wait for big draws in crude before adjusting the cartel's output. "There could be a danger OPEC will be behind the curve," he said, referring to the Organisation of the Petroleum Exporting Countries.
Violence in Nigeria, Africa's biggest crude producer, has disrupted the country's exports for months and lent further support to crude prices.