Crude falls to $101

PTI Singapore | Updated on March 15, 2011

Crude fell in Asia today as traders continued to assess the impact on demand caused by the Japanese nuclear crisis and earthquake as well as ongoing troubles in West Asia.

New York’s main contract, light sweet crude for delivery in April, dipped 58 cents to $100.61 per barrel while Brent North Sea crude for April lost 72 cents to $112.95.

For now, it appears that oil demand would not be as hard hit as previously thought, analysts said.

“Crude oil demand (from Japan) will therefore decrease but then Japan will likely boost the import of oil products such as fuel oil and diesel fuel for power generation use,” said Mr Victor Shum, senior principal for Purvin and Gertz energy consultancy in Singapore.

Japan, the world’s third largest economy, is also the third largest oil-consuming country.

The Asian powerhouse was hit by a massive 9.0-magnitude earthquake on Friday, unleashing a tsunami that battered the country’s northeast coast and stretched across the Pacific.

The quake also damaged nuclear power plants, on which the country relies heavily for energy, with concerns growing that one near Tokyo could go into meltdown following several blasts since Saturday.

Continuing unrest in the crude-producing West Asia is also on investors’ radar, analysts said.

Published on March 15, 2011

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