Comments
Oil prices were mixed in Asia today as the market recovered after a snap reaction to data showing an unexpected surge in US inventories, analysts said.
New York’s main contract, light sweet crude for delivery in May shed four cents to $94.41 a barrel and Brent North Sea crude for May delivery added 26 cents to $107.37 in mid-morning trade.
“Prices took a tumble after headline inventory numbers came in worse than expected,” said David Lennox, resource analyst at Fat Prophets in Sydney.
“The market is now recovering as dealers digest the fact that stockpiles are still looking quite tight with a robust corporate demand in the United States,” he said.
A weekly inventory report from the US Energy Information Administration released on Wednesday showed that US crude reserves rose 2.7 million barrels to 388.6 million barrels, higher than a predicted increase of 1.5 million barrels.
Surging US inventories signal weaker demand in the world’s biggest economy and puts downward pressure on prices.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.