World oil prices mixed amid economic gloom
Thursday, 25 December 2008
SINGAPORE, Dec 24 (AFP): World oil prices were mixed in Asian trade on Christmas eve today with the current economic gloom weighing down investors' mood, analysts said.
New York's main contract, light sweet crude for February delivery, rose nine cents to 39.07 dollars a barrel after closing 93 cents down at 38.98 dollars in US trade Tuesday. Brent North Sea crude for February delivery fell six cents to 40.30 dollars. The contract settled Tuesday 1.09 dollars lower at 40.36 dollars.
Latest US data showing that the world's biggest economy remains mired in a recession is likely to keep crude oil prices under pressure in the immediate term, analysts said.
"It is just more of the same on the economic front," said Jason Feer, Singapore-based vice president with energy market analysts Argus Media. "There is no sign of any economic recovery that will push up oil demand."
US government data released Tuesday confirmed the American economy-the world's biggest crude oil consumer-contracted by 0.5 per cent in the third quarter of this year.
The contraction was seen as marking the start of a steep downturn for the United States after it posted gross domestic product (GDP) growth of 2.8 per cent in the second quarter.
US data also showed new home sales in the crisis-hit property sector plunged in November to their lowest level since January 1991.
Crude prices have sunk more than 70 per cent since hitting a record high over 147 dollars in July amid fears the rapid slow- down of the global economy will hit energy demand.
Traders are awaiting the release Wednesday of the US Department of Energy's weekly oil inventory report for clues on US consumer demand.
Analysts polled by Platts energy information provider expect crude oil stocks to have risen by 1.5 million barrels in the past week and distillates, which includes heating oil, to increase 1.4 million barrels.
New York's main contract, light sweet crude for February delivery, rose nine cents to 39.07 dollars a barrel after closing 93 cents down at 38.98 dollars in US trade Tuesday. Brent North Sea crude for February delivery fell six cents to 40.30 dollars. The contract settled Tuesday 1.09 dollars lower at 40.36 dollars.
Latest US data showing that the world's biggest economy remains mired in a recession is likely to keep crude oil prices under pressure in the immediate term, analysts said.
"It is just more of the same on the economic front," said Jason Feer, Singapore-based vice president with energy market analysts Argus Media. "There is no sign of any economic recovery that will push up oil demand."
US government data released Tuesday confirmed the American economy-the world's biggest crude oil consumer-contracted by 0.5 per cent in the third quarter of this year.
The contraction was seen as marking the start of a steep downturn for the United States after it posted gross domestic product (GDP) growth of 2.8 per cent in the second quarter.
US data also showed new home sales in the crisis-hit property sector plunged in November to their lowest level since January 1991.
Crude prices have sunk more than 70 per cent since hitting a record high over 147 dollars in July amid fears the rapid slow- down of the global economy will hit energy demand.
Traders are awaiting the release Wednesday of the US Department of Energy's weekly oil inventory report for clues on US consumer demand.
Analysts polled by Platts energy information provider expect crude oil stocks to have risen by 1.5 million barrels in the past week and distillates, which includes heating oil, to increase 1.4 million barrels.