Singapore: Oil prices fell slightly to near
USD 79 a barrel on Wednesday in Asia despite an unexpected drop in US crude supplies which suggested demand may be picking up.
Benchmark crude for December delivery was down 20 cents
to USD 79.40 a barrel at midday Singapore time in electronic
trading on the New York Mercantile Exchange. The contract
gained USD 1.47 to settle at USD 79.60 yesterday.
US oil inventories dropped last week, the American
Petroleum Institute said late yesterday. Crude stocks fell 3.3
million barrels while analysts had expected a rise of 1.3
million barrels, according to a survey by Platts, the energy
information arm of McGraw-Hill Cos.
The Energy Information Administration is scheduled to
release its supply data later today.
Crude has fallen from its 2009 high of USD 82 a barrel
last month on investor doubts about the strength of the US
economy. Some analysts say the oil price could fall further if
a monthly US unemployment report on Friday confirms the number
of jobless continues to swell.
"We still feel that a decline toward the USD 75 area
could be forthcoming as this week proceeds," Galena,
Illinois-based Ritterbusch and Associates said in a report.
In other Nymex trading, heating oil fell 1.21 cents to
USD 2.06 a gallon. Gasoline for December delivery dropped 0.99
cent to USD 1.99 a gallon. Natural gas for December delivery
was steady at USD 4.92 per 1,000 cubic feet.
Bureau Report
First Published: Wednesday, November 04, 2009, 11:58