Oil prices make slight gains in Asia
Wednesday, 19 November 2008
SINGAPORE, Nov 18 (AFP): Oil prices rose in Asian trade today after falling around two dollars on worries over a deepening global financial crisis, dealers said.
New York's main futures contract, light sweet crude for December delivery, rose 68 cents to 55.63 dollars a barrel. The contract dropped 2.09 dollars to 54.95 at Monday's close of floor trading at the New York Mercantile Exchange.
Brent North Sea crude for January delivery rose 68 cents to 52.99 dollars. In London Monday, Brent fell 1.93 dollars to settle at 52.31 dollars.
David Moore, commodities strategist with the Commonwealth Bank of Australia in Sydney, said there was no fresh news to move the market Tuesday.
"It's really just the tail from what happened in last night's trading," he said.
The oil market remains preoccupied by worries about the international economy and its impact on oil consumption, Moore said.
Concern for slowing global economic growth and its impact on energy demand has led oil prices to plummet from record peaks above 147 dollars in July.
The oil market Monday digested news that Japan's economy slipped into recession in the third quarter, while American banking giant Citigroup announced massive job cuts.
The bank said it would slash an additional 50,000 jobs worldwide to cope with a global financial crisis and heavy losses.
Energy demand is already falling in the United States, the world's biggest oil consumer, and announcements such as that from Citigroup add to the economic fears, analysts said.
"Since these announcements are continuing that translates into lower demand in the future," said Andy Lipow, analyst at Lipow Oil Associates. "That is the overwhelming concern."
The dive in global oil prices has sparked alarm among the OPEC cartel, whose members pump about 40 per cent of the world's crude.
The Organisation of the Petroleum Exporting Countries (OPEC) is to meet on November 29 in Egypt, and some members are calling for the cartel to further cut production in the face of the plunging oil prices.
OPEC on Monday slashed its demand growth forecasts, citing "world economic turmoil" in its November monthly report.
The group now sees demand growth in 2008 of 0.33 per cent, revised down from 0.64 per cent forecast in October, while the 2009 demand projection was reduced to 0.57 per cent from 0.87 per cent.
New York's main futures contract, light sweet crude for December delivery, rose 68 cents to 55.63 dollars a barrel. The contract dropped 2.09 dollars to 54.95 at Monday's close of floor trading at the New York Mercantile Exchange.
Brent North Sea crude for January delivery rose 68 cents to 52.99 dollars. In London Monday, Brent fell 1.93 dollars to settle at 52.31 dollars.
David Moore, commodities strategist with the Commonwealth Bank of Australia in Sydney, said there was no fresh news to move the market Tuesday.
"It's really just the tail from what happened in last night's trading," he said.
The oil market remains preoccupied by worries about the international economy and its impact on oil consumption, Moore said.
Concern for slowing global economic growth and its impact on energy demand has led oil prices to plummet from record peaks above 147 dollars in July.
The oil market Monday digested news that Japan's economy slipped into recession in the third quarter, while American banking giant Citigroup announced massive job cuts.
The bank said it would slash an additional 50,000 jobs worldwide to cope with a global financial crisis and heavy losses.
Energy demand is already falling in the United States, the world's biggest oil consumer, and announcements such as that from Citigroup add to the economic fears, analysts said.
"Since these announcements are continuing that translates into lower demand in the future," said Andy Lipow, analyst at Lipow Oil Associates. "That is the overwhelming concern."
The dive in global oil prices has sparked alarm among the OPEC cartel, whose members pump about 40 per cent of the world's crude.
The Organisation of the Petroleum Exporting Countries (OPEC) is to meet on November 29 in Egypt, and some members are calling for the cartel to further cut production in the face of the plunging oil prices.
OPEC on Monday slashed its demand growth forecasts, citing "world economic turmoil" in its November monthly report.
The group now sees demand growth in 2008 of 0.33 per cent, revised down from 0.64 per cent forecast in October, while the 2009 demand projection was reduced to 0.57 per cent from 0.87 per cent.