Oil prices lower in Asia on rising supply, dollar
Wednesday, 10 October 2007
SINGAPORE, Oct 9 (AFP): World oil prices continued their falls in Asian trade today as the market focussed on rising supply and a stronger US dollar, dealers said.
New York's main oil futures contract, light sweet crude for delivery in November, was 17 cents lower at 78.85 dollars per barrel in morning trade.
The contract had plunged 2.20 dollars to 79.02 dollars per barrel in late United States trades Monday.
Brent North Sea crude for November delivery was 22 cents lower at 76.36 dollars per barrel after dropping 2.32 dollars in London.
Prices have fallen sharply since New York oil prices burst through the 80-dollar level for the first time last month and went on to hit an all-time peak of 84.10 dollars.
Brent oil hit a record high of 81.05 dollars per barrel in late September.
Steve Rowles, an analyst with CFC Seymour in Hong Kong, said that with the Atlantic Ocean hurricane season virtually over, and rising crude supplies, the market is focussing on supply and demand fundamentals.
The Gulf of Mexico is a leading oil-producing region for the United States and Mexico. Investors worry about storm damage to oil rigs and other infrastructure during the long Atlantic hurricane season that ends in November.
Crude oil stocks rose by 1.2 million barrels, a report last week by the US Department of Energy (DoE) showed, and Rowles said the market's consensus forecast is for another rise this week when the latest DoE report is issued.
A stronger US currency makes dollar-denominated commodities, such as crude oil and gold, more expensive for buyers using weaker currencies.
The euro fell to 1.4032 in morning Asian trade, from 1.4042 in late New York trade Monday.
In recent weeks, the euro had hit a series of record peaks against the dollar, which helped to boost oil prices.
Sucden analyst Michael Davies said during US trading hours that the fall in oil prices came on concerns over a possible slowdown in the US economy and uncertainty about the outcome of a recent credit crunch in the world's biggest economy.
New York's main oil futures contract, light sweet crude for delivery in November, was 17 cents lower at 78.85 dollars per barrel in morning trade.
The contract had plunged 2.20 dollars to 79.02 dollars per barrel in late United States trades Monday.
Brent North Sea crude for November delivery was 22 cents lower at 76.36 dollars per barrel after dropping 2.32 dollars in London.
Prices have fallen sharply since New York oil prices burst through the 80-dollar level for the first time last month and went on to hit an all-time peak of 84.10 dollars.
Brent oil hit a record high of 81.05 dollars per barrel in late September.
Steve Rowles, an analyst with CFC Seymour in Hong Kong, said that with the Atlantic Ocean hurricane season virtually over, and rising crude supplies, the market is focussing on supply and demand fundamentals.
The Gulf of Mexico is a leading oil-producing region for the United States and Mexico. Investors worry about storm damage to oil rigs and other infrastructure during the long Atlantic hurricane season that ends in November.
Crude oil stocks rose by 1.2 million barrels, a report last week by the US Department of Energy (DoE) showed, and Rowles said the market's consensus forecast is for another rise this week when the latest DoE report is issued.
A stronger US currency makes dollar-denominated commodities, such as crude oil and gold, more expensive for buyers using weaker currencies.
The euro fell to 1.4032 in morning Asian trade, from 1.4042 in late New York trade Monday.
In recent weeks, the euro had hit a series of record peaks against the dollar, which helped to boost oil prices.
Sucden analyst Michael Davies said during US trading hours that the fall in oil prices came on concerns over a possible slowdown in the US economy and uncertainty about the outcome of a recent credit crunch in the world's biggest economy.