Oil prices easier in Asian trade
Oil prices were easier in Asian trade on Friday as supply concerns eased further following the latest US stockpile figures, dealers said.
By Agencies |
SINGAPORE: Oil prices were easier in Asian trade on Friday as supply concerns eased further following the latest US stockpile figures, dealers said.
At New York's main contract, light sweet crude for October delivery, was down 16 cents at $63.06 a barrel from 63.22 in late US trades on Thursday.
Brent North Sea crude for October was flat at 62.24 dollars. "The price has fallen but I'm suprised that it didn't fall more on Wednesday," said Tony Nunan, a Tokyo based manager for energy risk management with Mitsubishi Corporation.
"The United States Department of Energy statistics were bearish for distillates stocks, which were much higher than last year's (figures)," he said.
Dealers said a report showing a strong build-up in US natural gas inventories, which are now 12 per cent above normal levels for this time of year highlighted the overall easing of tensions in the energy market.
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Natural gas futures fell below five dollars per million British thermal units (mBbtu), the lowest since 2004 and a 10 per cent drop in a single day. "It was a huge build. Natural gas prices are falling and dragging the rest of the market down ... it looks like the psychology right now favors lower energy prices," said Mike Fitzpatrick at Fimat USA. The market was also reacting to news that unions had called off their strike in Nigeria, Africa's biggest crude producer. They had initially called a three-day strike from Wednesday to protest unrest in the volatile Niger Delta region, home to the country's massive oil wealth.
Nunan however expressed continuing concerns over Iran and its disputed nuclear program. The United States and other major world powers suspect Iran is using its nuclear enrichment program as a cover to make nuclear weapons but Tehran says its nuclear ambitions are peaceful.
Iran is the world's fourth-biggest producer of crude and dealers fear any sanctions against the Islamic republic will result in supply disruptions.
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