Oil prices higher in Asia
Tuesday, 18 December 2007
SINGAPORE, Dec 17 (AFP): Oil prices were higher in Asian trade today after a major snowstorm struck the northeastern United States over the weekend, fuelling expectations that heating oil demand will strengthen, dealers said.
In morning trade, New York's main contract, light sweet crude for January delivery, was 47 cents higher at 91.74 US dollars a barrel from 91.27 dollars in late US trades Friday.
Brent North Sea crude for February delivery rose 51 cents to 92.20 dollars a barrel. Brent for January, which expired Friday, settled 55 cents higher at 92.67 dollars last week.
The Great Lakes and northeastern regions of the United States, the world's biggest heating oil market, were struck by winter storm over the weekend, the US Weather Channel reported.
"The market is responding to the winter storm in the US over the weekend," said Victor Shum, a Singapore-based analyst with energy consultancy Purvin and Gertz.
Prices were also supported by revised, higher forecasts for global energy demand by the International Energy Agency (IEA) and the Organisation of the Petroleum Exporting Countries (OPEC).
The IEA, energy policy adviser to major industrialised countries, in its latest report raised its forecast for world oil demand next year by 115,000 barrels per day. It cited demand from emerging economies as the reason.
OPEC said it expects global oil demand to grow 1.3 million barrels per day or 1.54 per cent, a slight upward revision from the cartel's previous forecast for a gain of 1.53 per cent.
In morning trade, New York's main contract, light sweet crude for January delivery, was 47 cents higher at 91.74 US dollars a barrel from 91.27 dollars in late US trades Friday.
Brent North Sea crude for February delivery rose 51 cents to 92.20 dollars a barrel. Brent for January, which expired Friday, settled 55 cents higher at 92.67 dollars last week.
The Great Lakes and northeastern regions of the United States, the world's biggest heating oil market, were struck by winter storm over the weekend, the US Weather Channel reported.
"The market is responding to the winter storm in the US over the weekend," said Victor Shum, a Singapore-based analyst with energy consultancy Purvin and Gertz.
Prices were also supported by revised, higher forecasts for global energy demand by the International Energy Agency (IEA) and the Organisation of the Petroleum Exporting Countries (OPEC).
The IEA, energy policy adviser to major industrialised countries, in its latest report raised its forecast for world oil demand next year by 115,000 barrels per day. It cited demand from emerging economies as the reason.
OPEC said it expects global oil demand to grow 1.3 million barrels per day or 1.54 per cent, a slight upward revision from the cartel's previous forecast for a gain of 1.53 per cent.