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Oil prices edged lower in Asian trade today due to profit-taking, after witnessing a rally in the previous session in response to a strong US jobs report, while dealers consider the prospect of an influx of Libyan crude into global markets, analysts said.
US benchmark West Texas Intermediate for August delivery eased 17 cents to $103.89, while Brent crude fell six cents to $110.94.
US jobs report
Yesterday, the Labor Department had said that the US economy added 288,000 jobs in June, well above the expectations of 215,000, while the unemployment rate fell to 6.1 per cent from 6.3 per cent in May.
Singapore’s United Overseas Bank said the latest data was “encouraging” as it was the fifth straight month in which more than 200,000 jobs had been created.
End to oil crisis
However, while the figures gave a boost to prices initially, UOB said they remained under pressure “as supply fears begin to ease after Libya declared an end to an oil crisis that has slashed exports’’.
Crude oil prices began easing on Wednesday after Libya’s interim Prime Minister Abdullah Al-Thani declared that authorities had regained control of the export terminals blockaded by rebels.
Production in Libya, a member of the OPEC oil cartel, has been severely limited for a year after rebels last summer blockaded the terminals as part of a campaign to restore autonomy in the country’s eastern region.
Its output currently stands at some 320,000 barrels per day, about a fifth of its normal production.
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