Oil prices below 82 dollars in Asia
Friday, 21 September 2007
SINGAPORE, Sept 20 (AFP): Oil prices were lower in Asian trade today as investors took profit following a record- setting rally, but are expected to remain high amid tight supplies and weather concerns, dealers said.
Diplomatic sabre-ratting over Iran is also contributing to market concerns because of its potential impact on geopolitics in the oil-producing Middle East region, they said.
At 3:15 pm (0715 GMT) New York's main futures contract, light sweet crude for October delivery, was trading at 81.83 dollars a barrel, down 10 cents from its record close of 81.93 dollars in late US trades Wednesday.
The contract hit an all-time intra-day high of 82.51 dollars Wednesday after the US Department of Energy (DoE) said crude oil reserves had tumbled the previous week, underscoring supply tightness.
Brent North Sea crude for November delivery was down 36 cents to 78.11 dollars. It had also jumped to 78.47 dollars in intra- day trading Wednesday, just shy of its all-time high of 78.64 dollars in August 2006.
"Investors are taking profit," said Victor Shum, a Singapore- based analyst with energy consultancy Purvin and Gertz.
"Oil prices have increased about 20 per cent over the past 18 trading days. That's a very sharp rise so some pullback is not surprising."
Highlighting supply concerns, the US DoE said crude inventories in the world's biggest energy consumer plunged by 3.8 million barrels to 318.8 million barrels in the week ending September 14.
Diplomatic sabre-ratting over Iran is also contributing to market concerns because of its potential impact on geopolitics in the oil-producing Middle East region, they said.
At 3:15 pm (0715 GMT) New York's main futures contract, light sweet crude for October delivery, was trading at 81.83 dollars a barrel, down 10 cents from its record close of 81.93 dollars in late US trades Wednesday.
The contract hit an all-time intra-day high of 82.51 dollars Wednesday after the US Department of Energy (DoE) said crude oil reserves had tumbled the previous week, underscoring supply tightness.
Brent North Sea crude for November delivery was down 36 cents to 78.11 dollars. It had also jumped to 78.47 dollars in intra- day trading Wednesday, just shy of its all-time high of 78.64 dollars in August 2006.
"Investors are taking profit," said Victor Shum, a Singapore- based analyst with energy consultancy Purvin and Gertz.
"Oil prices have increased about 20 per cent over the past 18 trading days. That's a very sharp rise so some pullback is not surprising."
Highlighting supply concerns, the US DoE said crude inventories in the world's biggest energy consumer plunged by 3.8 million barrels to 318.8 million barrels in the week ending September 14.