Oil prices higher in Asian trade
World oil prices were higher in Asian trade Thursday after US crude inventories climbed at a slower-than-expected pace last week.
By Agencies |
SINGAPORE: World oil prices were higher in Asian trade Thursday after US crude inventories climbed at a slower-than-expected pace last week, dealers said.
A dispute that resulted in oil-producing Venezuela cutting supplies to US energy giant ExxonMobil continued to spook the market, they added.
In morning trade, New York's main contract, light sweet crude for delivery in March, was up four cents to 93.31 dollars a barrel.
The contract closed 49 cents higher at 93.27 dollars during floor trading Wednesday at the New York Mercantile Exchange.
Brent North Sea crude for March delivery climbed eight cents to 93.40 dollars a barrel.
"The increase in US crude stocks came in smaller than expected, so this is supportive of oil futures," said Victor Shum, a Singapore-based analyst with energy consultancy Purvin and Gertz.
The US Department of Energy said Wednesday that crude stockpiles rose 1.1 million barrels to 301.1 million in the week ended February 8, smaller than the gain of 2.38 million barrels forecast by analysts.
Shum said the market remained concerned over a decision by Venezuela's state petroleum company PDVSA to suspend oil supplies to ExxonMobil in retaliation for the US firm's effort to freeze billions of dollars in global PDVSA assets.
The Venezuelan oil concern cited "judicial-economic aggression" by ExxonMobil as the reason for its action, which it described as an act of "reciprocity."
"In reality, the number of barrels of crude supplies affected is actually very small. But while market participants understand this, they also realise that Hugo Chavez is a volatile personality," Shum said, referring to the Venezuelan president.
A dispute that resulted in oil-producing Venezuela cutting supplies to US energy giant ExxonMobil continued to spook the market, they added.
In morning trade, New York's main contract, light sweet crude for delivery in March, was up four cents to 93.31 dollars a barrel.
The contract closed 49 cents higher at 93.27 dollars during floor trading Wednesday at the New York Mercantile Exchange.
Brent North Sea crude for March delivery climbed eight cents to 93.40 dollars a barrel.
"The increase in US crude stocks came in smaller than expected, so this is supportive of oil futures," said Victor Shum, a Singapore-based analyst with energy consultancy Purvin and Gertz.
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The US Department of Energy said Wednesday that crude stockpiles rose 1.1 million barrels to 301.1 million in the week ended February 8, smaller than the gain of 2.38 million barrels forecast by analysts.
Shum said the market remained concerned over a decision by Venezuela's state petroleum company PDVSA to suspend oil supplies to ExxonMobil in retaliation for the US firm's effort to freeze billions of dollars in global PDVSA assets.
The Venezuelan oil concern cited "judicial-economic aggression" by ExxonMobil as the reason for its action, which it described as an act of "reciprocity."
"In reality, the number of barrels of crude supplies affected is actually very small. But while market participants understand this, they also realise that Hugo Chavez is a volatile personality," Shum said, referring to the Venezuelan president.
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