Oil up on worries over US mortgage market crisis
Tuesday, 14 August 2007
SINGAPORE, Aug 13 (AFP): Oil prices were higher in Asian trade today amid lingering worries that the US subprime mortgage crisis will eventually hurt US economic growth, dealers said.
New York's main contract, light sweet crude for September delivery rose 18 cents to 71.65 US dollars a barrel from 71.47 dollars in late US trades Friday.
Brent North Sea crude for September delivery was four cents up at 70.43 dollars.
"That is still hanging over the market," Tobin Gorey, a commodity strategist with the Commonwealth Bank of Australia in Sydney, said of the troubled US subprime mortgage market.
Concerns about the multi-trillion housing and mortgage markets have swept the globe, sparking big falls on Asian and European stock markets that in turn prompted the Federal Reserve and other central banks to inject funds into the system.
Japan's central bank pumped more funds into the banking system, announcing Monday it will inject 600 billion yen (5.0 billion dollars) to avert liquidity shortages.
The Bank of Japan had already pumped one trillion yen into the money market Friday as part of the concerted global action to ward off a credit crunch.
The US Federal Reserve had pumped a further 38 billion dollars into the US banking system.
Analysts fear the crisis in the US subprime mortgage market could ignite a slowdown in the world's biggest economy which will affect energy demand and economic growth in the rest of the world.
Meanwhile, the International Energy Agency Friday called on Organisation of the Petroleum Exporting Countries (OPEC) to increase oil production to cope with an expected surge in winter demand in the northern hemisphere.
The IEA said in its monthly report that the main oil producers would have to release an extra 2.5 million barrels a day in the final quarter to keep up with higher-than-expected global demand.
Dollar stable in Asia
TOKYO, Aug 13 (AFP): The dollar was broadly steady in Asian trade today as recent concerted action by the world's major central banks helped to restore some calm to volatile financial markets, dealers said.
The Bank of Japan announced another cash injection of 600 billion yen (5.0 billion dollars) into the banking system as part of a global effort to avert liquidity shortages due to problems in the US mortgage sector.
The dollar was at 118.26 yen in Tokyo afternoon trade, down slightly from 118.37 in New York late Friday.
New York's main contract, light sweet crude for September delivery rose 18 cents to 71.65 US dollars a barrel from 71.47 dollars in late US trades Friday.
Brent North Sea crude for September delivery was four cents up at 70.43 dollars.
"That is still hanging over the market," Tobin Gorey, a commodity strategist with the Commonwealth Bank of Australia in Sydney, said of the troubled US subprime mortgage market.
Concerns about the multi-trillion housing and mortgage markets have swept the globe, sparking big falls on Asian and European stock markets that in turn prompted the Federal Reserve and other central banks to inject funds into the system.
Japan's central bank pumped more funds into the banking system, announcing Monday it will inject 600 billion yen (5.0 billion dollars) to avert liquidity shortages.
The Bank of Japan had already pumped one trillion yen into the money market Friday as part of the concerted global action to ward off a credit crunch.
The US Federal Reserve had pumped a further 38 billion dollars into the US banking system.
Analysts fear the crisis in the US subprime mortgage market could ignite a slowdown in the world's biggest economy which will affect energy demand and economic growth in the rest of the world.
Meanwhile, the International Energy Agency Friday called on Organisation of the Petroleum Exporting Countries (OPEC) to increase oil production to cope with an expected surge in winter demand in the northern hemisphere.
The IEA said in its monthly report that the main oil producers would have to release an extra 2.5 million barrels a day in the final quarter to keep up with higher-than-expected global demand.
Dollar stable in Asia
TOKYO, Aug 13 (AFP): The dollar was broadly steady in Asian trade today as recent concerted action by the world's major central banks helped to restore some calm to volatile financial markets, dealers said.
The Bank of Japan announced another cash injection of 600 billion yen (5.0 billion dollars) into the banking system as part of a global effort to avert liquidity shortages due to problems in the US mortgage sector.
The dollar was at 118.26 yen in Tokyo afternoon trade, down slightly from 118.37 in New York late Friday.