World oil prices mixed on signs of US demand weakening
Friday, 25 July 2008
SINGAPORE, July 24 (AFP): World oil prices were mixed in Asian trade today amid signs of weakening demand in the United States, the world's biggest energy user, dealers said.
In afternoon trade, New York's main contract, light sweet crude for September delivery dropped by 14 cents to 124.30 dollars a barrel from its close of 124.44 dollars during US trading hours Wednesday.
New York oil prices had already dropped a hefty 3.98 dollars Wednesday.
Brent North Sea crude for September delivery was up 14 cents at 125.43 dollars.
"The oil futures market continues to be in a bearish mood," said Victor Shum, a Singapore-based analyst with energy consultancy Purvin and Gertz, referring to the latest gasoline reserves figures by the US government.
"There are ongoing worries about demand erosion in the US and the latest US oil inventory report further confirms demand erosion in the US," he said, adding that "the current mood in the market is focused on demand erosion."
The US Energy Information Administration said Wednesday that crude reserves fell 1.6 million barrels in the week ending July 18. Market expectations had been for a smaller decline of 600,000 barrels.
But the EIA's weekly snapshot also showed that gasoline stockpiles rallied by 2.9 million barrels, far outstripping analysts' consensus forecasts for a gain of 200,000 barrels.
Gasoline consumption was 2.4 per cent lower from a year ago as drivers faced sky-high gasoline prices of 4.11 dollars a gallon (3.78 liters) in the peak of the traditional summer holiday driving season.
Prices at the pump eased to 4.06 dollars Monday, up 37 per cent from a year ago, the latest EIA data showed.
Easing concerns over Hurricane Dolly also took some pressure off prices, dealers said.
Vital energy production facilities in the Gulf of Mexico was spared as Dolly was downgraded to a tropical storm late Wednesday after it tore into the south Texas coast with 160-kilometre (100- mile) per hour winds and left 250,000 people without drinking water in Mexico.
Oil prices have tumbled by more than 23 dollars since striking record highs above 147 dollars on July 11. However, they remain at elevated levels after smashing through 100 dollars for the first time at the start of the year.
In afternoon trade, New York's main contract, light sweet crude for September delivery dropped by 14 cents to 124.30 dollars a barrel from its close of 124.44 dollars during US trading hours Wednesday.
New York oil prices had already dropped a hefty 3.98 dollars Wednesday.
Brent North Sea crude for September delivery was up 14 cents at 125.43 dollars.
"The oil futures market continues to be in a bearish mood," said Victor Shum, a Singapore-based analyst with energy consultancy Purvin and Gertz, referring to the latest gasoline reserves figures by the US government.
"There are ongoing worries about demand erosion in the US and the latest US oil inventory report further confirms demand erosion in the US," he said, adding that "the current mood in the market is focused on demand erosion."
The US Energy Information Administration said Wednesday that crude reserves fell 1.6 million barrels in the week ending July 18. Market expectations had been for a smaller decline of 600,000 barrels.
But the EIA's weekly snapshot also showed that gasoline stockpiles rallied by 2.9 million barrels, far outstripping analysts' consensus forecasts for a gain of 200,000 barrels.
Gasoline consumption was 2.4 per cent lower from a year ago as drivers faced sky-high gasoline prices of 4.11 dollars a gallon (3.78 liters) in the peak of the traditional summer holiday driving season.
Prices at the pump eased to 4.06 dollars Monday, up 37 per cent from a year ago, the latest EIA data showed.
Easing concerns over Hurricane Dolly also took some pressure off prices, dealers said.
Vital energy production facilities in the Gulf of Mexico was spared as Dolly was downgraded to a tropical storm late Wednesday after it tore into the south Texas coast with 160-kilometre (100- mile) per hour winds and left 250,000 people without drinking water in Mexico.
Oil prices have tumbled by more than 23 dollars since striking record highs above 147 dollars on July 11. However, they remain at elevated levels after smashing through 100 dollars for the first time at the start of the year.