Oil down in Asian trade, stay above 76 dollars
Friday, 5 February 2010
SINGAPORE, Feb 4 (AFP): Oil prices extended losses in Asian trade Thursday on a weaker equities market and a build-up in US crude inventories, analysts said.
New York's main futures contract, light sweet crude for delivery in March, fell 17 cents to 76.81 dollars per barrel.
London's Brent North Sea crude for March was down 30 cents to 75.62 dollars.
The market was hampered by weak stock markets in the United States and Asia, said Ben Westmore, an energy and minerals economist with the National Australia Bank in Melbourne.
"There was a little bit of weakness in the equity markets overnight in the US and Thursday the Asian session markets have been softer," he said.
Japanese and Hong Kong stocks fell after losses on Wall Street.
"There are some concerns about demand recovery as reflected in the equity markets and the big supply overhang especially in the US indicates that the outlook for the crude markets is a bit weak," Westmore said.
Gasoline or petrol reserves sank by 1.3 million barrels in the week ending January 29. That confounded market expectations for a gain of one million.
The US Department of Energy (DoE) added that inventories of distillates-including diesel and heating fuel-fell 900,000 barrels. Analysts had pencilled in an 800,000-barrel decline.
However, crude stockpiles leapt by 2.3 million barrels, despite market expectations that there would be no change, indicating weaker demand.
The DoE added Wednesday that US refiners cut back last week to operate at 77.8 per cent of capacity, the lowest rate in at least 20 years, outside the immediate aftermath of a hurricane.
New York's main futures contract, light sweet crude for delivery in March, fell 17 cents to 76.81 dollars per barrel.
London's Brent North Sea crude for March was down 30 cents to 75.62 dollars.
The market was hampered by weak stock markets in the United States and Asia, said Ben Westmore, an energy and minerals economist with the National Australia Bank in Melbourne.
"There was a little bit of weakness in the equity markets overnight in the US and Thursday the Asian session markets have been softer," he said.
Japanese and Hong Kong stocks fell after losses on Wall Street.
"There are some concerns about demand recovery as reflected in the equity markets and the big supply overhang especially in the US indicates that the outlook for the crude markets is a bit weak," Westmore said.
Gasoline or petrol reserves sank by 1.3 million barrels in the week ending January 29. That confounded market expectations for a gain of one million.
The US Department of Energy (DoE) added that inventories of distillates-including diesel and heating fuel-fell 900,000 barrels. Analysts had pencilled in an 800,000-barrel decline.
However, crude stockpiles leapt by 2.3 million barrels, despite market expectations that there would be no change, indicating weaker demand.
The DoE added Wednesday that US refiners cut back last week to operate at 77.8 per cent of capacity, the lowest rate in at least 20 years, outside the immediate aftermath of a hurricane.