Oil down in Asia on fresh energy demand worries
Friday, 28 November 2008
SINGAPORE, Nov 27 (AFP): World oil prices fell in Asia trade today on renewed worries about energy demand after latest US data showed a bigger-than-expected rise in the country's crude oil stocks, dealers said.
New York's main contract, light sweet crude for January delivery was off 1.13 dollars to 53.31 dollars a barrel.
Brent North Sea crude for January delivery fell 96 cents to 52.96 dollars.
The US government said yesterday in its latest weekly report the country's crude stockpiles surged by 7.3 million barrels in the week ending November 21.
Analysts' consensus forecasts had been for a gain of 900,000 barrels.
Gasoline reserves rose by 1.8 million barrels during the same period, the US government said.
The United States is the world's biggest energy user and its bruised economy, already seen to be in a recession by some leading economists, has been a key reason behind the recent sharp falls in oil prices.
Last week, crude oil prices sank below 50 dollars to levels not seen since early 2005 on fears a prolonged US-led global downturn would hit energy demand severely.
At current levels, crude prices are down almost 64 per cent from record peaks of above 147 dollars in July.
Analysts are not ruling out another production cut by the Organisation of the Petroleum Exporting Countries (OPEC) when the cartel meets Saturday in Cairo in a specially convened session to confront slumping oil prices.
The cartel had agreed in Vienna last month to reduce production by 1.5 million barrels a day from November 1 as they sought to defend tumbling prices.
"OPEC output cuts are just starting to eat into crude oil supplies, and the ministers may decide to cut additional barrels when they gather in Cairo on Saturday," said Peter Beutel, analyst at US energy consultancy Cameron Hanover.
Libya's oil minister Shukri Ghanem told AFP that "all options are open" in Cairo-and added that "there could be a decision" to cut output in the Egyptian capital.
OPEC pumps about 40 per cent of the world's crude.
New York's main contract, light sweet crude for January delivery was off 1.13 dollars to 53.31 dollars a barrel.
Brent North Sea crude for January delivery fell 96 cents to 52.96 dollars.
The US government said yesterday in its latest weekly report the country's crude stockpiles surged by 7.3 million barrels in the week ending November 21.
Analysts' consensus forecasts had been for a gain of 900,000 barrels.
Gasoline reserves rose by 1.8 million barrels during the same period, the US government said.
The United States is the world's biggest energy user and its bruised economy, already seen to be in a recession by some leading economists, has been a key reason behind the recent sharp falls in oil prices.
Last week, crude oil prices sank below 50 dollars to levels not seen since early 2005 on fears a prolonged US-led global downturn would hit energy demand severely.
At current levels, crude prices are down almost 64 per cent from record peaks of above 147 dollars in July.
Analysts are not ruling out another production cut by the Organisation of the Petroleum Exporting Countries (OPEC) when the cartel meets Saturday in Cairo in a specially convened session to confront slumping oil prices.
The cartel had agreed in Vienna last month to reduce production by 1.5 million barrels a day from November 1 as they sought to defend tumbling prices.
"OPEC output cuts are just starting to eat into crude oil supplies, and the ministers may decide to cut additional barrels when they gather in Cairo on Saturday," said Peter Beutel, analyst at US energy consultancy Cameron Hanover.
Libya's oil minister Shukri Ghanem told AFP that "all options are open" in Cairo-and added that "there could be a decision" to cut output in the Egyptian capital.
OPEC pumps about 40 per cent of the world's crude.