See More

Oil prices up in Asian trade

Jan 16 2013 07:59 AFP

File, AP)

Related Articles

Oil prices slide in Asia

Oil mixed in Asian trade

Oil up on Chinese trade data

Oil prices down in Asian trade

Oil prices edge up in quiet trade

Oil up on completion of new US pipeline


Singapore - Oil prices rebounded in Asian trade on Wednesday on stronger US demand for heating oil but an impending showdown in the US Congress over the debt ceiling could limit gains, analysts said.

New York's main contract, light sweet crude for delivery in February was up 15 cents to $93.43 a barrel and Brent North Sea crude for February delivery climbed 22 cents to $110.52.

The gains were driven by data showing better-than-expected demand for distillates, including heating oil, in the United States, said Victor Shum managing director of energy consultancy IHS Purvin and Gertz in Singapore.

Shum said a report by the American Petroleum Institute showed inventories of distillates - refined petroleum products - fell unexpectedly, indicating strong demand.

"The market reacted bullishly to that," Shum said.

He said however that the price increase could be limited by an impending showdown between Republican and Democrat lawmakers in the US Congress on raising the debt ceiling for the world's biggest economy.

"We expect acrimonious talks between the Republicans and Democrats. If the debt ceiling is not raised, the US cannot borrow any more money which will have implications for the US economy and the world," Shum added.

President Barack Obama Monday warned Republicans against using the debt ceiling as a "bargaining chip" in budget negotiations but indications are that the stand-off will continue.

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

commodities  |  markets  |  oil



Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Add your comment
Comment 0 characters remaining

Company Snapshot

We're talking about:


Johannesburg has been selected to host the Global Entrepreneurship Congress in 2017. "[The congress] will ensure that small business development remains firmly on the national agenda and the radar screen of all stakeholders, the Small Business Development minister said.

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

People who fall victim to Ponzi scams are:

Previous results · Suggest a vote