Oil prices fall on profit-taking in Asian trade
Oil prices fell in Asian trade Friday on profit-taking that likely marks only a temporary retreat from higher prices, dealers said.
By Agencies |
SINGAPORE: Oil prices fell in Asian trade Friday on profit-taking that likely marks only a temporary retreat from higher prices, dealers said.
At 10:48 am New York's main contract, light sweet crude for delivery in September, was down 19 cents at $74.08 per barrel.
The August contract closed in New York Thursday at $73.08. Brent North Sea crude for September delivery was down 24 cents at $73.48. Both contracts are well off record highs above $78 reached recently in response to an Israeli offensive against Lebanon to attack the Hezbollah Islamic militant group.
"Some people are taking profits for the weekend," said Tetsu Emori, chief commodities strategist at Mitsui Bussan Futures in Tokyo, describing the manoeuvre as very short-term trading. "I think market sentiment is still strong because it's the summer driving season," he said, noting demand was strong and a regular US report Wednesday showed energy stockpiles rising across the board last week.
The weekly summary showed crude oil inventories rose 200,000 barrels to 335.5 million barrels in the week to July 14. Analysts had expected a fall of 650,000 barrels. Gasoline (petrol) stocks went up 1.5 million barrels to 214.2 million, the report showed, compared to a predicted decline of 800,000 barrels. Emori said geo-political factors including the situation in the Middle East continue to be supportive for prices.
"It's very difficult to find bearish factors in the market," he said. Fimat analyst Mike Fitzpatrick in New York said "it is difficult to construct an argument for lower prices as long as the situation in the Middle East persists."
At 10:48 am New York's main contract, light sweet crude for delivery in September, was down 19 cents at $74.08 per barrel.
The August contract closed in New York Thursday at $73.08. Brent North Sea crude for September delivery was down 24 cents at $73.48. Both contracts are well off record highs above $78 reached recently in response to an Israeli offensive against Lebanon to attack the Hezbollah Islamic militant group.
"Some people are taking profits for the weekend," said Tetsu Emori, chief commodities strategist at Mitsui Bussan Futures in Tokyo, describing the manoeuvre as very short-term trading. "I think market sentiment is still strong because it's the summer driving season," he said, noting demand was strong and a regular US report Wednesday showed energy stockpiles rising across the board last week.
The weekly summary showed crude oil inventories rose 200,000 barrels to 335.5 million barrels in the week to July 14. Analysts had expected a fall of 650,000 barrels. Gasoline (petrol) stocks went up 1.5 million barrels to 214.2 million, the report showed, compared to a predicted decline of 800,000 barrels. Emori said geo-political factors including the situation in the Middle East continue to be supportive for prices.
"It's very difficult to find bearish factors in the market," he said. Fimat analyst Mike Fitzpatrick in New York said "it is difficult to construct an argument for lower prices as long as the situation in the Middle East persists."
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