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Oil prices were mixed in the Asian trade today as forecasts of a spike in US crude stockpiles were offset by geopolitical concerns in the Red Sea, analysts said.
New York’s main contract, light sweet crude for delivery in October, fell 38 cents to $88.52 per barrel. Brent North Sea crude for October delivery gained eight cents to $114.10.
Oil markets were being depressed by the American Petroleum Institute’s (API) prediction yesterday of a jump in crude stockpiles of the world’s largest oil consumer, said Mr Nick Trevethan, senior commodities strategist of ANZ Research.
Forecasts released by the API yesterday showed a sharper-than-expected rise in crude stockpiles, jumping 5.1 million barrels for the week ending August 26.
However, Mr Trevethan said geopolitical tensions in the oil-producing Arab region sparked by Israel and Iran’s naval posturing in the Red Sea was supporting prices as well.
Iran yesterday announced that it had dispatched a submarine and a warship to the Red Sea, prompting Israel to declare it was deploying two missile boats to the area as well.
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