Oil lower in Asia ahead of US energy report

Oil fell in Asian trade today as investors awaited the release of a widely monitored US energy data report.

New York's main contract, light sweet crude for October delivery dropped 67 cents to $70.26 a barrel. Brent North Sea crude for November delivery was off 76 cents to $69.10.

The US Department of Energy is to release later today its weekly inventory report which is seen as an indicator of oil demand in the world's biggest energy user.


Analysts expect oil inventories to have fallen 2.5 million barrels last week while petrol reserves are seen rising by 600,000 barrels. Distillate stocks, which include heating oil and diesel, are forecasted to rise by 1.4 million barrels, the poll showed.

Crude prices closed firmer yesterday, buoyed by economic data indicating a recovery in the US economy, with Americans spending more in August.

Official data showed US retail sales leapt a stronger than expected 2.7% in August from July, led by the government's popular 'Cash for Clunkers' rebate programme that boosted car sales.

Meanwhile, OPEC, which pumps about 40% of the world's crude, said in its monthly report yesterday that world oil demand in 2009 was expected to contract by 1.56 million barrels per day to 84.05 million bpd. But it said in 2010, demand is seen rising to 84.6 million.

Posted in: Business-Economic,World News