Oil prices mixed in Asian trading
Wednesday, 16 July 2008
SINGAPORE, July 15 (AFP): World oil prices were mixed in Asian trading on Tuesday after workers at a Brazilian state- run energy firm began a five-day strike, dealers said.
New York's main contract, light sweet crude for August delivery, was off 14 cents to 145.04 dollars a barrel from Monday's close of 145.18 at the end of US trading hours.
Brent North Sea crude for August delivery gained eight cents to 144.00.
Dealers expected any dip in crude prices to be limited because of supply concerns as well as political tensions in the Middle East over Iran's uranium enrichment programme.
A five-day strike by oil workers in Brazil against state-run Petrobras is also expected to exacerbate supply concerns, dealers said.
Petrobras said output was cut seven per cent as the strike affected offshore platforms in the Campos basin, which provides 82 per cent of the firm's daily 1.8-million-barrel output.
Brazil is the world's 12th largest crude producer.
Tehran insists its nuclear drive is aimed solely at generating energy, but some Western nations fear it could be aimed at making an atomic bomb and have called for a freeze of its uranium enrichment.
Dealers fear potential supply disruption from Iran in the event of conflict with the United States or Israel. Iran is the second-biggest crude oil producer in the Organisation of the Petroleum Exporting Countries (OPEC) cartel.
"There is limited downside risk to oil pricing in the coming weeks because of supply-side concerns.... the situation over Iran remains fluid," said Victor Shum, a Singapore-based analyst with energy consultancy Purvin and Gertz.
"Recently, the oil complex has been driven by supply threats," analysts from Societe Generale said in a report, adding that "tensions and rhetoric over the Iran nuclear programme continue to run high."
Oil prices have almost doubled over the past year and have soared since breaking through 100 dollars at the start of 2008. The record prices have sparked protests around the world amid fears for economic growth.
New York's main contract, light sweet crude for August delivery, was off 14 cents to 145.04 dollars a barrel from Monday's close of 145.18 at the end of US trading hours.
Brent North Sea crude for August delivery gained eight cents to 144.00.
Dealers expected any dip in crude prices to be limited because of supply concerns as well as political tensions in the Middle East over Iran's uranium enrichment programme.
A five-day strike by oil workers in Brazil against state-run Petrobras is also expected to exacerbate supply concerns, dealers said.
Petrobras said output was cut seven per cent as the strike affected offshore platforms in the Campos basin, which provides 82 per cent of the firm's daily 1.8-million-barrel output.
Brazil is the world's 12th largest crude producer.
Tehran insists its nuclear drive is aimed solely at generating energy, but some Western nations fear it could be aimed at making an atomic bomb and have called for a freeze of its uranium enrichment.
Dealers fear potential supply disruption from Iran in the event of conflict with the United States or Israel. Iran is the second-biggest crude oil producer in the Organisation of the Petroleum Exporting Countries (OPEC) cartel.
"There is limited downside risk to oil pricing in the coming weeks because of supply-side concerns.... the situation over Iran remains fluid," said Victor Shum, a Singapore-based analyst with energy consultancy Purvin and Gertz.
"Recently, the oil complex has been driven by supply threats," analysts from Societe Generale said in a report, adding that "tensions and rhetoric over the Iran nuclear programme continue to run high."
Oil prices have almost doubled over the past year and have soared since breaking through 100 dollars at the start of 2008. The record prices have sparked protests around the world amid fears for economic growth.