Oil prices slip in Asian trade on spike in US stockpiles

SINGAPORE: Oil prices were down in Asian trade today as forecasts of a massive increase in US crude stockpiles tempered market sentiment following recent rallies, analysts said.

New York's main contract, light sweet crude for delivery in November fell 15 cents to USD 82.67 a barrel.

Brent North Sea crude for November delivery shed seven cents to USD 84.77.

Data released by the American Petroleum Institute (API) yesterday showing a spike in US crude reserves was checking oil prices, said Victor Shum, senior principal of Purvin and Gertz international energy consultants in Singapore.

"What's causing this adjustment this morning... is the inventory report from the API," he said.

"The API report indicated crude stockpiles climbing by 4.4 million barrels in the last week. That's a huge gain," added Shum.

The crude slump comes on the heels of recent rallies in the oil market, but Shum said prices would continue to be supported by a disruption in oil supply in the US Gulf Coast and a rolling strike in a key French oil terminal.

The closure of a shipping channel in Houston, US, after a barge accident on Sunday caused a crude shortage in four refineries around the area as supplies to them were disrupted, according to US media reports.

A major oil terminal in France has been hit by ongoing strikes, triggered by union opposition to government plans to reform the country's ports.

The general secretary of the port's CGT union, Pascal Galeote, told Dow Jones Newswires the strike at Fos-Lavera oil terminal would continue into its 10th day today.