Oil prices plum­met in Asian trade

The China Post - - BUSINESS INDEX & -

Oil prices fell in Asia Thurs­day af­ter a mixed U.S. energy re­port showed a healthy de­cline in crude stock­piles but a rise in out­put that could ag­gra­vate the global sup­ply glut.

U.S. bench­mark West Texas In­ter­me­di­ate for Septem­ber de­liv­ery fell 21 cents to US$44.94 while Brent crude for Septem­ber eased seven cents to US$49.52 in af­ter­noon trade.

The U.S. Depart­ment of Energy said Wed­nes­day crude stock­piles in the world’s top con­sumer slid 4.4 mil­lion bar­rels in the week through July 31, in­di­cat­ing ro­bust de­mand.

But it also showed U. S. pro­duc­tion ris­ing by 52,000 bar­rels per day to 9.5 mil­lion bar­rels per day, re­bound­ing from the pre­vi­ous week’s dip.

“Crude prices con­tin­ued to re­main weak with fo­cus on over­sup­ply,” said Sanjeev Gupta, head of the Asia-Pa­cific oil and gas prac­tice at busi­ness con­sul­tancy firm EY. Deal­ers had been hop­ing a slow­down in U.S. out­put, and in­creased de­mand dur­ing the sum­mer driv­ing sea­son, could whit­tle down the huge global sup­plies that were a key rea­son for the col­lapse in prices from around US$120 in June last year.

Gupta said Fri­day’s U.S. jobs re­port for July “will con­sid­er­ably im­pact crude prices”.

Traders are look­ing to see if the ex­pected bullish re­port will lift the dol­lar and sub­se­quently per­suade the Fed­eral Re­serve to raise in­ter­est rates more quickly.

Newspapers in English

Newspapers from Taiwan

© PressReader. All rights reserved.