Oil prices lower in Asian trade

Published August 15, 2012

Crude oil — File Photo
Crude oil — File Photo

SINGAPORE: World oil prices eased in Asian trade Wednesday as data showing weaker US energy demand prompted traders to sell, analysts said.

New York's main contract, West Texas Intermediate light sweet crude for delivery in September, fell 25 cents to $93.18, and Brent North Sea crude for September dropped 34 cents to $113.69 in the morning.

“Oil was really overbought,” said Victor Shum, a Singapore-based analyst with Purvin and Gertz energy consultants, referring to a price rise overnight.

Data from the American Petroleum Institute showing an “unexpected” rise in crude oil inventories in the world's biggest economy gave traders a reason to sell, Shum told AFP.

A rise in inventories is a sign of softer energy demand.

“Oil futures are continuing to look for direction,” Shum said, adding that concerns over the violence in Syria unsettling the oil-producing Middle East region was likely to keep upward pressure on prices.

For Brent oil, which is traded in London, production disruptions due to scheduled maintenance in North Sea oilfields next month are expected to result in tighter supplies and higher prices, he said.

On the other hand, the eurozone debt crisis remains a concern for investors and although growth in key European countries came in above expectations, such expectations had been “low to start with,” Shum added.

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Rigging claims
Updated 04 May, 2024

Rigging claims

The PTI’s allegations are not new; most elections in Pakistan have been controversial, and it is almost a given that results will be challenged by the losing side.
Gaza’s wasteland
04 May, 2024

Gaza’s wasteland

SINCE the start of hostilities on Oct 7, Israel has put in ceaseless efforts to depopulate Gaza, and make the Strip...
Housing scams
04 May, 2024

Housing scams

THE story of illegal housing schemes in Punjab is the story of greed, corruption and plunder. Major players in these...
Under siege
Updated 03 May, 2024

Under siege

Whether through direct censorship, withholding advertising, harassment or violence, the press in Pakistan navigates a hazardous terrain.
Meddlesome ways
03 May, 2024

Meddlesome ways

AFTER this week’s proceedings in the so-called ‘meddling case’, it appears that the majority of judges...
Mass transit mess
03 May, 2024

Mass transit mess

THAT Karachi — one of the world’s largest megacities — does not have a mass transit system worth the name is ...