Oil steadies near US$97 after losses due to high supply & mixed growth
APBANGKOK -- Oil dwelled near US$97 a barrel Friday, consolidating after two weeks of losses sparked by high supplies and patchy global economic growth.
October 26, 2013, 12:04 am TWN
Benchmark U.S. crude for December delivery was up 20 cents at US$97.31 a barrel at late afternoon Bangkok time in electronic trading on the New York Mercantile Exchange. The contract, which rose 25 cents to US$97.11 on Thursday, is down nearly 5 percent over the past two weeks.
One factor weighing on the price was Wednesday's report from the Energy Information Administration that said U.S. oil inventories rose by 5.2 million barrels last week, a possible symptom of subdued demand and overproduction. The rise in stockpiles followed a 4 million barrel increase in the previous week.
“Demand isn't looking great and it's not anything to do with fuel efficiency in today's cars. It's the fact that there's high unemployment, weak job creation,” said Carl Larry of Oil Outlooks and Opinions.
Brent crude was down 17 cents at US$106.82 a barrel on the ICE Futures exchange in London.
In other energy futures trading on the Nymex:
— Wholesale gasoline fell 1.9 cents to US$2.553 a gallon.
— Natural gas fell 1.2 cents to US$3.617 per 1,000 cubic feet.
— Heating oil shed 0.4 cent to US$2.895 a gallon.