Oil prices weaker in Asian trade
Oil prices were lower in Asian trade Monday on profit-taking but US gasoline (petrol) supply concerns were expected to limit the declines, dealers said.
By Agencies |
SINGAPORE: Oil prices were lower in Asian trade Monday on profit-taking but US gasoline (petrol) supply concerns were expected to limit the declines, dealers said.
Worries over heightened civil unrest in Nigeria, Africa's largest producer, should also lend support to prices, they said. At 10:57 am (0257 GMT), New York's main contract, light sweet crude for August delivery, was down 25 cents to $72.56 a barrel from $72.81 in late US trades Friday after reaching their highest levels since late August last year.
Brent North Sea crude for August delivery fell two cents to $75.60. "Prices should be going down because the market is completely overheated and overbought," said Tetsu Emori, chief commodities strategist with Mitsui Bussan Futures in Tokyo.
The decline is expected to be brief because of existing concerns over low US gasoline stocks and the unrest in Nigeria, he said, adding: "Those are still major issues in the market."
US gasoline reserves were about 4.2 per cent below their level at the same time last year, according to figures released last week.
In Nigeria, daily exports of 2.6 million barrels have been reduced by a quarter because of unrest - including abductions of foreign oil workers - in the oil-producing south. The latest kidnapping victim was a three-year-old British girl who was freed Sunday.
Worries over heightened civil unrest in Nigeria, Africa's largest producer, should also lend support to prices, they said. At 10:57 am (0257 GMT), New York's main contract, light sweet crude for August delivery, was down 25 cents to $72.56 a barrel from $72.81 in late US trades Friday after reaching their highest levels since late August last year.
Brent North Sea crude for August delivery fell two cents to $75.60. "Prices should be going down because the market is completely overheated and overbought," said Tetsu Emori, chief commodities strategist with Mitsui Bussan Futures in Tokyo.
The decline is expected to be brief because of existing concerns over low US gasoline stocks and the unrest in Nigeria, he said, adding: "Those are still major issues in the market."
US gasoline reserves were about 4.2 per cent below their level at the same time last year, according to figures released last week.
In Nigeria, daily exports of 2.6 million barrels have been reduced by a quarter because of unrest - including abductions of foreign oil workers - in the oil-producing south. The latest kidnapping victim was a three-year-old British girl who was freed Sunday.
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