SINGAPORE - OIL fell slightly in Asian trade on Thursday on profit-taking after overnight gains that were fuelled mainly by a bigger-than-expected drop in US crude stocks, analysts said.
New York's main contract, light sweet crude for October delivery fell seven cents to US$72.44 (S$102.11) dollars a barrel. Brent North Sea crude for November delivery was five cents lower at US$71.62.
Data released on Wednesday by the US Department of Energy showed the country's crude stocks dropped by 4.7 million barrels in the week to September 11.
Analysts polled by Dow Jones Newswires had forecasted an average decline of 2.5 million barrels.
The sharper-than-expected drop in crude stocks was seen as an indication that oil demand was improving in the US, the world's biggest energy user.
Crude prices, which closed firmer Wednesday, also received a boost from positive US data showing the world's biggest economy was recovering from a recession that started in late 2007.
The drop in inventories 'caused the rally in crude oil but in addition to that, the reaction of the stock market based on economic data is really what made the oil market rally during the day,' said Andy Lipow of Lipow Oil Associates.
US Federal Reserve chairman Ben Bernanke said earlier this week the economy had turned a corner but cautioned that the pace of growth remained weak.
'Even though from a technical perspective the recession is very likely over at this point, it's still going to feel like a very weak economy for some time as many people will still find that their job security and their employment status is not what they wish it was,' he said.
'So that's a challenge for us and policymakers going forward,' he added in response to a question at a Washington forum on Tuesday. -- AFP
Thursday 17 September 2009
Oil falls slightly to US$72
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