Oil prices ease in Asia
Ahead of the weekly US energy inventory report oil prices eased in Asian trade on Wednesday.
By Agencies |
SINGAPORE: Oil prices eased in Asian trade on Wednesday, ahead of the weekly US energy inventory report, shrugging off concerns of possible supply disruption from a labour union strike in Nigeria, dealers said.
Nigeria's National Labour Congress said it will proceed with the strike called for Wednesday after the government refused to reverse a hike in the price of petrol.
At 12:15 pm (0415 GMT) New York's main oil futures contract, light sweet crude for delivery in July, fell 18 cents to $68.92 per barrel from $69.10 per barrel in late US trades. Brent North Sea crude for August delivery was down eight cents at $71.76 .
On Tuesday, "the market reacted at news of possible oil production shut-downs (in Nigeria)," said Steve Rowles, an analyst with CFC Seymour Securities in Hong Kong.
"Prices should come off a bit today," he said, adding that traders are mainly focussed on the US energy inventories numbers to be released later Wednesday.
"We are looking at more of overall US demand and whether there will be enough gasoline stockpiles for the driving season. I think after last week's surprising gasoline numbers hitting below average, the refinery output should increase this week."
Tight US gasoline (petrol) reserves during the current summer driving season, when many Americans take to the roads for their vacations, have stoked oil prices.
The United States is the world's biggest energy consumer.
Analysts are expecting a decline of 0.5 million barrels in US crude oil stockpiles, with a modest gain of 1.19 million barrels in gasoline.
Last week, oil prices surged after the US Department of Energy reported US gasoline inventories were unchanged at 201.5 million barrels in the week ended June 8.
That broke a five-week streak of gains and confounded market expectations for a large increase of 1.5 million barrels.
Meanwhile, the Nigerian government refused Tuesday to meet union demands to fully reverse an increase in petrol prices.
Instead, it renewed its offer to halve the price hike, which it said it considers "a sufficient acknowledgement of the difficulties arising from" the rise in the price of petrol.
Nigeria is Africa's biggest crude oil producer and the sixth largest in the world, accounting for 2.6 million barrels a day, but a quarter of this has been lost due to unrest in the volatile oil-producing south.
Nigeria's National Labour Congress said it will proceed with the strike called for Wednesday after the government refused to reverse a hike in the price of petrol.
At 12:15 pm (0415 GMT) New York's main oil futures contract, light sweet crude for delivery in July, fell 18 cents to $68.92 per barrel from $69.10 per barrel in late US trades. Brent North Sea crude for August delivery was down eight cents at $71.76 .
On Tuesday, "the market reacted at news of possible oil production shut-downs (in Nigeria)," said Steve Rowles, an analyst with CFC Seymour Securities in Hong Kong.
"Prices should come off a bit today," he said, adding that traders are mainly focussed on the US energy inventories numbers to be released later Wednesday.
"We are looking at more of overall US demand and whether there will be enough gasoline stockpiles for the driving season. I think after last week's surprising gasoline numbers hitting below average, the refinery output should increase this week."
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Tight US gasoline (petrol) reserves during the current summer driving season, when many Americans take to the roads for their vacations, have stoked oil prices.
The United States is the world's biggest energy consumer.
Analysts are expecting a decline of 0.5 million barrels in US crude oil stockpiles, with a modest gain of 1.19 million barrels in gasoline.
Last week, oil prices surged after the US Department of Energy reported US gasoline inventories were unchanged at 201.5 million barrels in the week ended June 8.
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That broke a five-week streak of gains and confounded market expectations for a large increase of 1.5 million barrels.
Meanwhile, the Nigerian government refused Tuesday to meet union demands to fully reverse an increase in petrol prices.
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Instead, it renewed its offer to halve the price hike, which it said it considers "a sufficient acknowledgement of the difficulties arising from" the rise in the price of petrol.
Nigeria is Africa's biggest crude oil producer and the sixth largest in the world, accounting for 2.6 million barrels a day, but a quarter of this has been lost due to unrest in the volatile oil-producing south.
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