Price of oil de­clines in Asian trade

The China Post - - BUSINESS INDEX & -

Oil prices fell in Asia Tues­day af­ter a se­nior Saudi of­fi­cial sig­naled that the world’s top crude ex­porter has no in­ten­tion of cut­ting pro­duc­tion, de­spite a global sup­ply glut, an­a­lysts said.

Amer­i­can bench­mark West Texas In­ter­me­di­ate fell 73 cents to US$56.26 while Brent eased 68 U.S. cents to US$64.15 in af­ter­noon trade.

“Saudi Ara­bia is in­ter­ested in main­tain­ing its share in the mar­ket and in­ter­ested in keep­ing its cus­tomers,” said Prince Ab­du­laziz bin Sal­man, the deputy oil min­is­ter, ac­cord­ing to Bloomberg News.

“We will sup­ply any de­mand for Saudi oil, as we are in­ter­ested in the sta­bil­ity of the mar­ket.

“Saudi Ara­bia re­sponds to de­mand in the mar­ket ... we will pro­vide oil to who­ever asks for it.”

Sin­ga­pore’s United Over­seas Bank said Prince Ab­du­laziz’s com­ments were putting pres­sure on oil prices.

Saudi Ara­bia, the top pro­ducer in the Or­ga­ni­za­tion of Petroleum Ex­port­ing Coun­tries (OPEC), pumped 10.1 mil­lion bar­rels a day in March, ac­cord­ing to the Paris-based In­ter­na­tional En­ergy Agency.

The king­dom, OPEC’s de facto leader, has so far re­sisted calls for an out­put re­duc­tion to al­le­vi­ate a global sup­ply glut, mov­ing in­stead to slash prices on crude ex­ports to main­tain mar­ket share.

Prices are also un­der pres­sure ow­ing to bear­ish ex­pec­ta­tions for Wed­nes­day’s weekly in­ven­tory re­port from the U.S. Depart­ment of En­ergy.

The coun­try’s his­tor­i­cally high stock­piles are es­ti­mated to have in­creased by 2.5 mil­lion bar­rels in the week ended April 17, ac­cord­ing to a Bloomberg News sur­vey of ex­perts.

Oil prices have shed about half their value since last June as global sup­plies of the com­mod­ity, boosted by strong pro­duc­tion in the United States and the OPEC car­tel, out­pace de­mand.

Newspapers in English

Newspapers from Taiwan

© PressReader. All rights reserved.