Oil declines in Asian trade on economic recovery fears
Thursday, 13 August 2009
SINGAPORE, Aug 12 (AFP): Oil was lower in Asian trade today on further worries over the pace of the global economic recovery, analysts said.
Prices will be under further pressure if the release of a key US energy reserves report later in the day indicates falling demand in the world's largest oil user, they said.
New York's main contract, light sweet crude for September delivery, dropped 54 cents to 68.91 dollars a barrel.
Brent North Sea crude for September delivery was 69 cents lower at 71.77 dollars.
"Traders are going to concentrate on the crude and gasoline numbers," said Peter Donovan, vice president at Vantage Trading.
A Dow Jones Newswires poll of analysts tipped US crude stocks to rise by 700,000 barrels and gasoline stocks to fall by 1.3 million barrels.
Distillate inventories, which includes heating oil and diesel, are expected to drop by 300,000 barrels, the poll showed.
Crude oil prices fell Tuesday on fresh worries that the global economy may not recover as fast as had been hoped, meaning energy demand would also be affected.
"The recovery is far from firmly established," analysts from London-based Capital Economics consultancy said in a report.
The Organisation of the Petroleum Exporting Countries (OPEC) said Tuesday in its monthly report that world oil demand will decline slightly in 2009 but begin to grow again next year.
Prices will be under further pressure if the release of a key US energy reserves report later in the day indicates falling demand in the world's largest oil user, they said.
New York's main contract, light sweet crude for September delivery, dropped 54 cents to 68.91 dollars a barrel.
Brent North Sea crude for September delivery was 69 cents lower at 71.77 dollars.
"Traders are going to concentrate on the crude and gasoline numbers," said Peter Donovan, vice president at Vantage Trading.
A Dow Jones Newswires poll of analysts tipped US crude stocks to rise by 700,000 barrels and gasoline stocks to fall by 1.3 million barrels.
Distillate inventories, which includes heating oil and diesel, are expected to drop by 300,000 barrels, the poll showed.
Crude oil prices fell Tuesday on fresh worries that the global economy may not recover as fast as had been hoped, meaning energy demand would also be affected.
"The recovery is far from firmly established," analysts from London-based Capital Economics consultancy said in a report.
The Organisation of the Petroleum Exporting Countries (OPEC) said Tuesday in its monthly report that world oil demand will decline slightly in 2009 but begin to grow again next year.