Oil prices down on demand concerns

PTI Singapore | Updated on March 14, 2011

Oil fell in the Asian trade today on concerns that demand from quake-hit Japan would be affected, analysts said.

New York’s main contract, light sweet crude for delivery in April, dipped $1.28 to $99.88 per barrel. Brent North Sea crude for April delivery lost $1.39 to $112.45.

“In the short term, there might be some demand disruptions due to the Japanese earthquake, but there will be an increase in fuel oil imports due to the lost nuclear power capacity, which will be supportive of fuel oil prices in the near term,” said Mr Chen Xin Yi, commodities analyst for Barclays Capital.

Crude futures fell immediately last week in reaction to Friday’s massive 8.9-magnitude earthquake off Japan, unleashing a tsunami that battered the country’s northeast coast and stretched across the Pacific.

Published on March 14, 2011

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