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Crude prices flat as focus turns to US inventory
AFP
SINGAPORE
Petroleumworld.com 07 26 06
Oil prices were little changed in Asian trade Wednesday as the market awaited weekly US inventory figures for its next lead, dealers said.
At 10:22 am (0222 GMT) New York's main contract, light sweet crude for delivery in September, was down three cents at 73.72 dollars per barrel compared with 73.75 dollars in late US trades Tuesday.
Brent North Sea crude for September delivery was also down three cents at 73.25 dollars.
Tony Nunan, manager for energy risk management at Mitsubishi Corp's international petroleum business in Tokyo, said the market was focussed on the US inventory report due out later Wednesday.
"The general market feeling is there will be a draw on crude but neutral or a slight build in gasoline (petrol)," Nunan said.
The United States is in the middle of its summer driving season when demand for gasoline is high.
Despite the death on Tuesday of four United Nations observers in an Israeli strike on their post in southern Lebanon, Nunan said the market's fears over the two-week old war in Lebanon seems to be easing as the international community attempts to contain the conflict.
An international conference involving 15 nations plus the European Union and the World Bank was set to begin Wednesday in Rome to discuss the crisis in Lebanon, where Israeli forces are battling guerrillas of the Islamic militant group Hezbollah.
"I think it's still in corrective mode," Nunan said of the market.
But with continuing international concern over the nuclear program in Iran, which backs Hezbollah, as well as the war in Iraq, the Middle East will continue providing support for prices, he said.
"It's going to keep a bullish underpinning to the market," said Nunan, who sees crude prices falling to 70 or 72 dollars in the next weeks.
AFP 26 0317 GMT 07 06
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