Share

Oil prices down in Asian trade

Singapore, April 16, 2015 (AFP) -Oil prices fell in Asia Thursday after a five-day rally but losses were tempered by a surprisingly upbeat US supply report, analysts said.

US benchmark West Texas Intermediate (WTI) for May delivery fell 17 cents to $56.22 while Brent crude for June slipped 44 cents to $62.88 in late-morning trade.

On Wednesday WTI jumped $3.10 to $56.39, its highest closing price since December 23, while Brent crude for May shot up $1.89 to $60.32 on its last day of trading.

Analysts said prices remained supported by the official US stockpiles report Wednesday.

The Department of Energy (DoE) said crude inventories rose by 1.29 million barrels in the week to April 10, much lower than the surge expected by analysts.

Rises in US reserves are indicative of slack demand in the world's top crude consumer.

"Compared to past weeks of over 10 million, this miniature increment hints at some changes in fundamentals," said Daniel Ang, investment analyst at Phillip Futures in Singapore.

The DoE also said US oil production fell by 20,000 barrels, or 0.2 percent, to 9.38 million barrels per day, in the week ending April 10.

Analysts said the decline should help ease the global crude oversupply, which led to a collapse in prices of more than 50 percent between June and January.

"Although we hope for much lower production, keeping production at 9.4 million barrels a day is a start," said Ang.

"Moving forward, we do not see any more increase in US crude production," he added.

The Paris-based International Energy Agency (IEA) on Wednesday cut its supply forecast for non-OPEC countries, citing a lower outlook for US and Canadian output and the "worsening conflict" in Yemen.

The agency also bumped up by 90,000 barrels per day its forecast for 2015 petroleum demand. The IEA now expects 2015 consumption of 93.6 million barrels per day, up 1.1 million barrels per day for the year.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.2%
Rand - Pound
23.95
-0.2%
Rand - Euro
20.46
+0.0%
Rand - Aus dollar
12.36
-0.1%
Rand - Yen
0.13
-0.3%
Platinum
911.00
+1.6%
Palladium
1,008.15
+0.6%
Gold
2,217.47
+1.0%
Silver
24.78
+0.5%
Brent Crude
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.9%
Resource 10
57,251
+2.9%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders