Oil down on weak demand concerns, firmer dollar
Friday, 26 March 2010
SINGAPORE, March 25 (AFP): Oil prices extended losses in Asian trade today on US demand worries after a government inventory report showed a surge in crude stocks in the world's largest energy consumer, analysts said.
New York's main contract, light sweet crude for May delivery, dropped 31 cents to 80.30 dollars a barrel. The contract had shed 1.30 dollars in Wednesday's trade.
Brent North Sea crude for May was down 27 cents to 79.35 dollars a barrel.
The US Department of Energy said in its weekly inventory report Wednesday crude oil inventories rose by 7.2 million barrels last week, confounding expectations of an increase of 1.7 million barrels.
"Primarily, the market is responding to the report which showed a very substantial increase in crude oil inventory over the past week," said Victor Shum, a Singapore-based analyst with energy consultancy Purvin and Gertz.
Oil was also under pressure from "the continued volatility of the US dollar versus the euro" amid heightened fears over the debt crisis engulfing Greece and Portugal that has sent the euro dipping lower this week, said Shum.
New York's main contract, light sweet crude for May delivery, dropped 31 cents to 80.30 dollars a barrel. The contract had shed 1.30 dollars in Wednesday's trade.
Brent North Sea crude for May was down 27 cents to 79.35 dollars a barrel.
The US Department of Energy said in its weekly inventory report Wednesday crude oil inventories rose by 7.2 million barrels last week, confounding expectations of an increase of 1.7 million barrels.
"Primarily, the market is responding to the report which showed a very substantial increase in crude oil inventory over the past week," said Victor Shum, a Singapore-based analyst with energy consultancy Purvin and Gertz.
Oil was also under pressure from "the continued volatility of the US dollar versus the euro" amid heightened fears over the debt crisis engulfing Greece and Portugal that has sent the euro dipping lower this week, said Shum.