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Oil slips to $80 on demand concerns, eurozone jitters

Oil slips to $80 on demand concerns, eurozone jitters
AFP
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First Published: Wed, May 12 2010. 09 48 AM IST
Updated: Wed, May 12 2010. 09 48 AM IST
Singapore: Oil prices were lower in Asian trade Wednesday as sentiment was dampened by indications of weak US energy demand and doubts remained over a massive eurozone bailout plan, analysts said.
New York’s main contract, light sweet crude for June delivery, fell 42 cents to $75.95 a barrel while Brent North Sea crude for June slid 17 cents to $80.32 a barrel.
The New York contract for June was pressured by a weekly industry report from the American Petroleum Institute on Tuesday that said stockpiles of crude at Cushing in Oklahoma, where the contract is delivered, was at a record high.
“The (June contract) which will expire next Monday, is especially weak because of high inventories in the Cushing area,” Ken Hasegawa, an energy desk manager of the Newedge Japan brokerage, told AFP.
He said prices of other New York crude contracts as well as that of Brent will remain “steady but because of a fear of the European crisis, the upperside will be limited”.
In the short term, however, oil prices would be supported at $75 a barrel, Hasegawa added.
Stockpiles of crude in the US are closely watched because it is the world’s biggest economy and the largest energy consuming nation.
A weekly government oil inventory report by the US Department of Energy will follow late Wednesday.
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First Published: Wed, May 12 2010. 09 48 AM IST
More Topics: Commodities | Energy | Oil | Markets | Crude Prices |