Share

Oil prices edge up

Singapore -Oil prices rose in Asia on Thursday after US President Barack Obama vowed to destroy jihadist militants in crude producers Syria and Iraq, but analysts said weak global demand and a supply glut capped gains.

US benchmark West Texas Intermediate for October delivery rose 16 cents to $91.83 while Brent crude for October gained 14c to $98.18 in mid-morning trade.

In a prime-time televised address, Obama on Wednesday said the United States was ready to strike the "Islamic State" (IS) in Syria, while vowing to expand operations against them in neighbouring Iraq.

"Our objective is clear: we will degrade, and ultimately destroy, ISIL through a comprehensive and sustained counter-terrorism strategy," Obama said.

The Islamic State group, also known as the Islamic State of Iraq and the Levant (ISIL), has overrun large swathes of Iraq and Syria and declared a "caliphate" in those areas.

The sweeping offensive began on June 9, preventing Baghdad from exporting oil via a pipeline to Turkey and by road to Jordan.

In Syria, a three-year civil war between the government and insurgents including IS has seen production diminish from 400 000 barrels a day in 2010 to around 25 000 barrels a day in January, according to the US Energy Information Administration.

Desmond Chua, market analyst at CMC Markets in Singapore, said oil prices are unlikely to surge after Obama's speech.

"Unless there is a dramatic escalation in the situation with the Islamic State, we are unlikely to see crude supplies being threatened," Chua told AFP.

"The global supply glut combined with signs of weak demand will continue to contribute to a somewhat slackening of oil prices," he said.

The Organisation for Petroleum Exporting Countries on Wednesday said in a report that demand would grow by 1.05 million barrels per day in 2014 to 91.2 million barrels, trimming 50 000 from the previous outlook.

Demand in 2015 is expected to grow 1.19 million barrels per day, 20 000 barrels a day fewer than before, the cartel said.

 
 

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
18.88
+0.3%
Rand - Pound
23.86
+0.2%
Rand - Euro
20.39
+0.2%
Rand - Aus dollar
12.31
+0.2%
Rand - Yen
0.12
+0.2%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
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