Oil prices eased in Asia today as dealers stood on the sidelines awaiting the latest US stockpiles report for clues about demand in the world’s top crude consumer, analysts said.

US benchmark West Texas Intermediate for September delivery fell six cents to $100.91 and Brent crude for September delivery was down 34 cents at $107.38 in late-morning trade.

US stockpiles data

“Oil prices are quiet at the moment with investors focusing on the US stockpiles data out later in the day,” David Lennox, resource analyst at Fat Prophets in Sydney, said.

Reserves are expected to have fallen by 1.8 million barrels on an average in the week to July 25, according to analysts polled by the Wall Street Journal.

Gasoline stockpiles are expected to have risen 800,000 barrels, while the stocks of distillates, which include heating oil and diesel, are also expected to have increased by one million barrels. Refinery use is expected to fall by 0.2 percentage points to 93.6 per cent of capacity.

Market watchers believe refineries will soon scale back output ahead of the end of the summer driving season in early September, reducing the demand for crude oil.

EU sanctions against Russia

Lennox said oil prices were also pressured following easing concerns that fresh European Union sanctions against Russia, including on the state-controlled oil company Rosneft, would immediately impact Moscow’s energy exports.

“The sanctions aren’t likely to have any kind of immediate or short-term impact on global oil supply,” Lennox said.

Desmond Chua, market analyst at CMC Markets in Singapore, said investors are keenly awaiting the release of US economic growth data for the April-June quarter, as well as the latest policy statement by the US Federal Reserve later today.

While the bank policymakers are expected to keep the interest rates at record lows and further cut their stimulus programme, investors are hoping for an indication that the monetary policy could be tightened soon.

Related Topics
comment COMMENT NOW