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

IMF’s unease
Updated 24 May, 2024

IMF’s unease

It is clear that the next phase of economic stabilisation will be very tough for most of the population.
Belated recognition
24 May, 2024

Belated recognition

WITH Wednesday’s announcement by three European states that they intend to recognise Palestine as a state later...
App for GBV survivors
24 May, 2024

App for GBV survivors

GENDER-based violence is caught between two worlds: one sees it as a crime, the other as ‘convention’. The ...
Energy inflation
Updated 23 May, 2024

Energy inflation

The widening gap between the haves and have-nots is already tearing apart Pakistan’s social fabric.
Culture of violence
23 May, 2024

Culture of violence

WHILE political differences are part of the democratic process, there can be no justification for such disagreements...
Flooding threats
23 May, 2024

Flooding threats

WITH temperatures in GB and KP forecasted to be four to six degrees higher than normal this week, the threat of...