Oil prices firmer in Asian trade
Oil prices were firmer in Asian trade on Wednesday ahead of the weekly US inventory report and an OPEC meeting next week amid speculation about a further cut in output, dealers said.
By Agencies |
SINGAPORE: Oil prices were firmer in Asian trade on Wednesday ahead of the weekly US inventory report and an OPEC meeting next week amid speculation about a further cut in output, dealers said.
At 0230 GMT New York's main contract, light sweet crude for January delivery, was up 13 cents to $62.56 a barrel from $62.43 in late US trade on Tuesday.
Brent North Sea crude for January added nine cents to $63.41. "The market awaits the inventory data and the general expectation is that heating oil is getting more important in the northern Hemisphere winter season and so a draw down on distillate products is expected," said Victor Shum, senior principal at Purvin and Gertz Inc in Singapore.
Analysts forecast that stocks of US distillates, which include heating fuel, fell by 950,000 barrels last week owing to a cold snap in the northeastern United States. Going forward, the US National Weather Service says the northern United States will have higher-than-average temperatures over the December 9-13 period, which should curb demand.
Although product stockpiles are falling, there is still an ample supply for this time of year, analysts say. Prices were also supported by expectations that the 11-member Organisation of the Petroleum Exporting Countries (OPEC) will cut output further at a meeting on December 14 in Nigeria.
At 0230 GMT New York's main contract, light sweet crude for January delivery, was up 13 cents to $62.56 a barrel from $62.43 in late US trade on Tuesday.
Brent North Sea crude for January added nine cents to $63.41. "The market awaits the inventory data and the general expectation is that heating oil is getting more important in the northern Hemisphere winter season and so a draw down on distillate products is expected," said Victor Shum, senior principal at Purvin and Gertz Inc in Singapore.
Analysts forecast that stocks of US distillates, which include heating fuel, fell by 950,000 barrels last week owing to a cold snap in the northeastern United States. Going forward, the US National Weather Service says the northern United States will have higher-than-average temperatures over the December 9-13 period, which should curb demand.
Although product stockpiles are falling, there is still an ample supply for this time of year, analysts say. Prices were also supported by expectations that the 11-member Organisation of the Petroleum Exporting Countries (OPEC) will cut output further at a meeting on December 14 in Nigeria.
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