Oil prices slightly firmer in Asian trade
Oil prices were slightly firmer in Asian trade on Friday as investors pondered over a rash of kidnappings in African oil producer Nigeria and declining US gasoline (petrol) inventories.
By Agencies |
SINGAPORE: Oil prices were slightly firmer in Asian trade on Friday as investors pondered over a rash of kidnappings in African oil producer Nigeria and declining US gasoline (petrol) inventories, dealers said. At 11:25 am, New York's main oil futures contract, light sweet crude for delivery in June, was up one cent to 63.20 dollars a barrel from 63.19 dollars in late US trades.
Brent North Sea crude for June was up 13 cents to 66.18 dollars. "Today it's still sideways trading, there's some volatility," said Victor Shum, an analyst with energy consultancy Purvin and Gertz in Singapore. Investors are monitoring the latest developments in Nigeria, Africa's biggest oil exporter where armed men abducted at least 20 foreigners in three separate incidents, dealers said.
The attacks, less than two weeks after presidential elections marred by violence and widespread allegations of fraud, followed another kidnapping Tuesday in which six expatriates were seized. Nigeria is the world's sixth-biggest oil exporter but its output is being severely hit by frequent kidnappings of foreign oil workers and attacks to pipelines.
Dealers said US gasoline stockpiles remain in focus ahead of the US holiday driving season, which starts later this month. US gasoline reserves fell 1.1 million barrels to 193.1 million last week and are down 34.1 million barrels or 15 per cent since early February. "In the short-term, the US gasoline market will continue to underpin (prices)," Shum said.
"There is some market expectation that US refinery operating rates will increase and the tightness in the gasoline market will be relieved." A US government announcement on Wednesday that it would halt buying crude for its strategic petroleum reserve (SPR), possibly for several months, could put downward pressure on prices, Shum said.
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