Oil mixed in Asian trade

SINGAPORE: Oil prices were mixed in Asian trade today as sagging demand in the United States, the world's largest energy consuming nation, limited the market's gains, analysts said.

New York's main contract, light sweet crude for delivery in June, was up five cents to UAD 83.75 a barrel. Brent North Sea crude for June fell two cents to USD 85.65.

The market was weighed down by a report Wednesday from the US Department of Energy (DoE) which showed an unexpected increase in crude and product stocks, analysts said.

The rise indicates weaker demand as the world's biggest economy struggles to recover from its worst economic downturn since the 1930s.

"It does put some doubt into the fact that the market won't move back into balance," Ben Westmore, minerals and energy economist for the National Australia Bank in Melbourne, told AFP.

"It's arguable whether (oil above USD 80 a barrel) is really justified given the very weak fundamentals," he added.

The DoE announced on Wednesday that US crude reserves increased 1.9 million barrels in the week ending April 16. This was against market expectations for a drop of 200,000 barrels.

Gasoline or petrol stockpiles also soared 3.6 million barrels, exceeding forecasts of a small gain of 300,000 barrels.

Distillates, which include diesel and heating fuel, rose 2.1 million barrels whereas analysts had expected an increase of 900,000 barrels.