Crude oil prices were mixed in Asian trade today after a steep decline in US trade, as investors await the release of US stockpiles data while keeping an eye on a disruption in Iraqi supplies.
New York’s main contract, West Texas Intermediate (WTI) crude for February delivery, eased two cents to $95.42 in mid-morning trade, while Brent North Sea crude for February delivery rose 25 cents to $108.03.
WTI crude plunged $2.98 in New York trade yesterday, while Brent crude tumbled $3.02, following news that a major Libyan field could come back on line later this week, which would soften the demand.
A spokesman for the Libyan National Oil Corporation had said yesterday that the 330,000 barrel a day El Sharara field is expected to resume normal output within two or three days, once protesters who have blocked production pull out.
Oil production in Libya has plunged to about 250,000 barrels a day from nearly 1.5 million in the face of demands from armed protesters for more regional autonomy and greater say over the distribution of oil revenues.
Desmond Chua, market analyst at CMC Markets in Singapore, said there was broadly “positive sentiment” over a solid US stockpiles report to be released later today.
The report, usually released on Wednesday, has been postponed due to the New Year’s Day holiday.
According to analysts polled by Dow Jones Newswires, the average forecast is that crude oil supplies fell 2.2 million barrels last week, a fifth consecutive dip after a 10 week run of rises.