Oil gains in edgy Asian trade

Oil gains in edgy Asian trade


Singapore: World oil prices rose in Asian trade on 11 October in an edgy market that dealers say remains well supported by concerns over tight supplies.

The US Department of Energy (DoE) was to issue its latest weekly report on energy stockpiles today, a day later than usual because of Monday’s public holiday in the US.

New York’s main oil futures contract, light sweet crude for delivery in November, was 14 cents higher at $81.44 a barrel in morning trade after rising more than a dollar in US trades to $81.30 per barrel the previous day.

Brent North Sea crude for November delivery was 27 cents higher at $78.87 per barrel after gaining $1.11 in London.

“The market’s on edge," said Jason Feer, Asia Pacific vice-president and general manager of energy market analysts Argus Media.

The US report is widely expected to show a fall in distillates, including crucial heating fuel, ahead of the peak-demand northern hemisphere winter months.

“It seems they’re sort of getting behind the curve in terms of producing," Feer said. “Once that happens, the only thing that can bail you out is a warm winter."

Sucden analyst Michael Davies said during US trading hours that oil prices “remain well supported by concerns over tight fuel supplies and prospects for an increased demand next year."

The US Energy Information Administration (EIA), a branch of the energy department, said it sees demand higher based on a government report projecting this coming winter will be four per cent colder than last winter.