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Oil prices marginally higher in Asian trade
AFP
SINGAPORE
Petroleumworld.com 04 25 07Oil prices were marginally higher in Asian trade Wednesday ahead of the US weekly energy inventory report, dealers said.
At 2:15 pm (0615 GMT) New York's main oil futures contract, light sweet crude for delivery in June, was up two cents at 64.60 dollars a barrel from 64.58 dollars per barrel, after falling 1.31 dollars in US trade Tuesday.
Brent North Sea crude for June delivery was up 10 cents at 67.26 dollars per barrel.
"The market is moving very slow. There's not a lot going. I think the market is trying to absorb what happened since it took a tumble last night," said CFC Seymour analyst Steve Rowles in Hong Kong.
US home sales plummeted by 8.4 percent last month, the biggest amount in 18 years, the National Association of Realtors' survey showed Tuesday, stoking fears that further declines in home prices will eventually undermine consumer spending, tipping the economy downwards.
"The US economic data came out at about 10:00 pm last night and in an hour the prices declined substantially," Rowles said.
The market was awaiting the weekly US Department of Energy report on energy stockpiles due later Wednesday.
Rowles said the report was expected to show a fall of 1.3 million barrels in crude oil stocks and 1.5 million barrels for gasoline (petrol).
Traders are closely watching gasoline supplies, amid strong gasoline demand and refineries coming out of maintenance, ahead of the US peak holiday driving season in May.
Geopolitical risk was also supporting the oil market, analysts said.
Scores of gunmen attacked a Chinese-run oil field in a remote area of Ethiopia on Tuesday, killing nine Chinese and 65 Ethiopians in a raid claimed by a separatist rebel group.
"It did have an impact on the oil market but it appeared to be more an isolated incident," said Rowles.
The market has also been nervous over lost production in Nigeria, the world's sixth biggest exporter of crude, where traders have expressed concern over further instability after last weekend's disputed presidential elections.
AFP 25 0624 GMT 04 07
Copyright© 2007 AFP. All Rights Reserved.
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