World oil prices fall in Asia after moves to ease tight credit
Friday, 14 December 2007
SINGAPORE, Dec 13 (AFP): World oil prices fell in Asia today after earlier rocketing above 94 dollars as traders reacted to new measures that aimed to ease tight credit conditions, dealers said.
In late morning trade, New York's main contract, light sweet crude for January delivery eased 34 cents to 94.05 dollars a barrel after shooting up 4.37 dollars to close at 94.39 dollars per barrel in New York Wednesday.
Brent North Sea crude for January delivery dropped 52 cents to 93.50 dollars a barrel. The contract had jumped 4.03 dollars in London to settle at 94.02 dollars per barrel Wednesday.
Dealers said crude futures prices were supported following a coordinated move by world central banks to inject more liquidity into global financial markets. The plan, announced by the central banks of Britain, Canada, the eurozone, Switzerland and the United States, helped ease concerns about an economic slowdown, which would likely dampen demand for energy.
The central banks' plan provided "a breath of economic optimism," Antoine Halff, an analyst at Fimat, said during US trading hours.
But the market was "somewhat overbought" and fell back in reaction, said Steve Rowles, an analyst with CFC Seymour in Hong Kong.
"Going up four dollars in one day, I think that the market's saying that might have been a bit too drastic," Rowles said. "It just sort of proves how volatile the markets are."
Rowles discounted the impact of a weekly United States Department of Energy (DoE) report on energy stockpiles.
Wednesday's DoE report said crude inventories fell 700,000 barrels, in line with consensus forecasts for a drop of 750,000 barrels. DoE said US stocks of distillates, including heating fuel and diesel, fell 800,000 barrels in the week ended December 7. The market had expected a gain of 500,000 barrels.
"The inventory stats were bearish for crude and neutral for gasoline, heating oil, and diesel," said a report from Societe Generale researchers.
In late morning trade, New York's main contract, light sweet crude for January delivery eased 34 cents to 94.05 dollars a barrel after shooting up 4.37 dollars to close at 94.39 dollars per barrel in New York Wednesday.
Brent North Sea crude for January delivery dropped 52 cents to 93.50 dollars a barrel. The contract had jumped 4.03 dollars in London to settle at 94.02 dollars per barrel Wednesday.
Dealers said crude futures prices were supported following a coordinated move by world central banks to inject more liquidity into global financial markets. The plan, announced by the central banks of Britain, Canada, the eurozone, Switzerland and the United States, helped ease concerns about an economic slowdown, which would likely dampen demand for energy.
The central banks' plan provided "a breath of economic optimism," Antoine Halff, an analyst at Fimat, said during US trading hours.
But the market was "somewhat overbought" and fell back in reaction, said Steve Rowles, an analyst with CFC Seymour in Hong Kong.
"Going up four dollars in one day, I think that the market's saying that might have been a bit too drastic," Rowles said. "It just sort of proves how volatile the markets are."
Rowles discounted the impact of a weekly United States Department of Energy (DoE) report on energy stockpiles.
Wednesday's DoE report said crude inventories fell 700,000 barrels, in line with consensus forecasts for a drop of 750,000 barrels. DoE said US stocks of distillates, including heating fuel and diesel, fell 800,000 barrels in the week ended December 7. The market had expected a gain of 500,000 barrels.
"The inventory stats were bearish for crude and neutral for gasoline, heating oil, and diesel," said a report from Societe Generale researchers.