Oil prices rebound in Asian trade
Thursday, 23 August 2007
SINGAPORE, Aug 22 (AFP): Crude oil prices were firmer in Asian trade today on bargain hunting after overnight falls on easing concerns as vital US energy facilities were spared from Hurricane Dean's fury, dealers said.
New York's main contract, light sweet crude for October delivery rose 29 cents to 69.86 US dollars from 69.57 in late US trades Tuesday.
Brent North Sea crude for October delivery gained 17 cents to 68.86 dollars.
"It's a small bounce and I think some market participants might view this as a buying opportunity," said Victor Shum, an analyst with energy consultancy Purvin and Gertz consultancy.
Further sharp falls in the coming weeks were however unlikely as the six-month Atlantic hurricane season that started in June usually peaks from September onwards, dealers said.
"There is a good chance that crude oil futures won't fall a lot further even though it crashed through the psychological barrier of 70 dollars," said Shum.
Hurricane Dean Tuesday swirled over the oil-rich Gulf of Mexico where it could regain some of the punch it lost after slamming onto Mexico's Caribbean coast as a monstrous category five storm.
Despite the rare intensity the storm lost much of its punch when it hit land before dawn Tuesday, there were no immediate reports of casualties or major damage in Mexico.
Dean had killed at least nine people during its earlier rampage across the Caribbean.
The International Energy Agency said it was slightly concerned about Dean's impact on Mexican oil production-but believed its passage will not affect global oil markets.
"What could worry us a bit is that it will pass over Mexican production," William Ramsay, the deputy executive director of the IEA, told French radio FM.
New York's main contract, light sweet crude for October delivery rose 29 cents to 69.86 US dollars from 69.57 in late US trades Tuesday.
Brent North Sea crude for October delivery gained 17 cents to 68.86 dollars.
"It's a small bounce and I think some market participants might view this as a buying opportunity," said Victor Shum, an analyst with energy consultancy Purvin and Gertz consultancy.
Further sharp falls in the coming weeks were however unlikely as the six-month Atlantic hurricane season that started in June usually peaks from September onwards, dealers said.
"There is a good chance that crude oil futures won't fall a lot further even though it crashed through the psychological barrier of 70 dollars," said Shum.
Hurricane Dean Tuesday swirled over the oil-rich Gulf of Mexico where it could regain some of the punch it lost after slamming onto Mexico's Caribbean coast as a monstrous category five storm.
Despite the rare intensity the storm lost much of its punch when it hit land before dawn Tuesday, there were no immediate reports of casualties or major damage in Mexico.
Dean had killed at least nine people during its earlier rampage across the Caribbean.
The International Energy Agency said it was slightly concerned about Dean's impact on Mexican oil production-but believed its passage will not affect global oil markets.
"What could worry us a bit is that it will pass over Mexican production," William Ramsay, the deputy executive director of the IEA, told French radio FM.