Oil lower in Asian trade
Friday, 11 January 2008
SINGAPORE, Jan 10 (AFP): Oil prices fell in afternoon Asian trade today, reversing earlier gains, after a US report on energy stockpiles showed an unexpectedly sharp drop in crude inventories but a rise in refinery output.
New York's main contract, light sweet crude for February delivery, fell four cents to 95.63 US dollars per barrel from 95.67 in late New York trades Wednesday.
The price had risen by 30 cents in Asian morning trade.
Brent North Sea crude for February was down 10 cents at 94.27 dollars per barrel after gaining 16 cents in morning trade.
The US Department of Energy (DoE) weekly energy reserves report showed crude stocks fell by 6.8 million barrels in the week ended January 4 -- a far steeper decline than the 1.2 million barrels forecast by analysts.
At 282.8 million barrels, US crude oil inventories were last week at their lowest level since October 15, 2004.
It was the eighth consecutive weekly fall in reserves.
"The decline in crude stock was larger than expected, with the crude oil inventory below the five-year historical average normally seen for this time of year," said Victor Shum, senior principal at Purvin and Gertz international energy consultants in Singapore.
A steep reduction in imports, which fell by 203,000 barrels per day to 9.81 million barrels, caused the sharper-than-expected drop, the DoE said.
The report showed refineries operating at 91.3 per cent of capacity, the highest rate since August.
Analysts from the Commonwealth Bank of Australia said prices may rise in the near-term but are not expected to match recent record highs.
Last week, crude prices touched 100 dollars per barrel for the first time, partly buoyed by the previous DoE report of falling crude supply, and political tensions in nuclear-armed Pakistan.
Dealers predict cautious trade ahead of the next meeting of the Organisation of the Petroleum Exporting Countries (OPEC) cartel on February 1 in Vienna.
New York crude struck a record 100.09 dollars last Thursday, when Brent also hit a record 98.50 dollars.
New York's main contract, light sweet crude for February delivery, fell four cents to 95.63 US dollars per barrel from 95.67 in late New York trades Wednesday.
The price had risen by 30 cents in Asian morning trade.
Brent North Sea crude for February was down 10 cents at 94.27 dollars per barrel after gaining 16 cents in morning trade.
The US Department of Energy (DoE) weekly energy reserves report showed crude stocks fell by 6.8 million barrels in the week ended January 4 -- a far steeper decline than the 1.2 million barrels forecast by analysts.
At 282.8 million barrels, US crude oil inventories were last week at their lowest level since October 15, 2004.
It was the eighth consecutive weekly fall in reserves.
"The decline in crude stock was larger than expected, with the crude oil inventory below the five-year historical average normally seen for this time of year," said Victor Shum, senior principal at Purvin and Gertz international energy consultants in Singapore.
A steep reduction in imports, which fell by 203,000 barrels per day to 9.81 million barrels, caused the sharper-than-expected drop, the DoE said.
The report showed refineries operating at 91.3 per cent of capacity, the highest rate since August.
Analysts from the Commonwealth Bank of Australia said prices may rise in the near-term but are not expected to match recent record highs.
Last week, crude prices touched 100 dollars per barrel for the first time, partly buoyed by the previous DoE report of falling crude supply, and political tensions in nuclear-armed Pakistan.
Dealers predict cautious trade ahead of the next meeting of the Organisation of the Petroleum Exporting Countries (OPEC) cartel on February 1 in Vienna.
New York crude struck a record 100.09 dollars last Thursday, when Brent also hit a record 98.50 dollars.