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Oil prices down in Asian trade

Last Updated: Friday, January 17, 2014 - 09:24

Singapore: World oil prices eased in Asian trade today owing to supply concerns as non-OPEC members such as the United States ramp up production.

US benchmark West Texas Intermediate for delivery in February dipped one cent to USD 93.95 by mid-morning after see-sawing in volatile trade.

European benchmark Brent crude for March was down 27 cents at USD 105.48. The February contract expired yesterday.

Dealers fear "supplies may outstrip demand, fuelled by increased in production from non-members of Organisation of Petroleum Exporting Countries (OPEC)", Phillip Futures said in a market commentary.

OPEC output in December fell to 29.44 million barrels per day, below the 30 million bpd ceiling set for the same month, it said.

However, Phillip Futures also noted that "US crude production climbed to a 25-year high of 8.16 million bpd last week, due to the shale oil and gas boom".

The 12-member OPEC said in its monthly report that demand for its oil was expected to fall in 2014 as the supply from non-members increases by an estimated 1.27 million bpd over 2013 to average 55.38 billion bpd.

Non-OPEC supply growth was revised higher and mainly came from the United States and Canada.

Reuters
First Published: Friday, January 17, 2014 - 09:18
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