Oil prices weakened in Asian trade on Thursday as investors focused on a build-up in US reserves, dealers said.
At 10:40 am, New York's main contract, light sweet crude for March delivery, was down 15 cents to 55.22 US dollars a barrel from 55.37 dollars in closing US deals on Wednesday.
Brent North Sea crude for March was five cents lower at 55.38 dollars.
Dealers said increases in US stockpiles pressured prices, reversing gains made in reaction to plans by President George W. Bush to double the country's emergency oil reserves by 2027.
"We are pushing into February here and the inventory levels are quite high right now," said Steve Rowles, an analyst with CFC Seymour Securities in Hong Kong.
"It is continuing to show that demand has slowed down because of the warmer temperature in the United States earlier this year," he said.
US stocks of distillate products, such as heating oil and diesel fuel, increased 700,000 barrels to 142.6 million in the week ended January 19 while crude reserves rose 700,000 barrels to 322.2 million barrels, US figues showed.
The stockpiles are, however, expected to show a decline in next week's report after temperatures in the US fell in recent days with snow storms reported in many areas, dealers said.
"There was a bit of a surprise increase in the distillate numbers but with the cold, it might change in the next few weeks. Because of the colder weather, the market suspects that the inventory overhang might dissipate," said Bart Melek, an analyst at BMO Capital Markets.
INDIA TIMES
At 10:40 am, New York's main contract, light sweet crude for March delivery, was down 15 cents to 55.22 US dollars a barrel from 55.37 dollars in closing US deals on Wednesday.
Brent North Sea crude for March was five cents lower at 55.38 dollars.
Dealers said increases in US stockpiles pressured prices, reversing gains made in reaction to plans by President George W. Bush to double the country's emergency oil reserves by 2027.
"We are pushing into February here and the inventory levels are quite high right now," said Steve Rowles, an analyst with CFC Seymour Securities in Hong Kong.
"It is continuing to show that demand has slowed down because of the warmer temperature in the United States earlier this year," he said.
US stocks of distillate products, such as heating oil and diesel fuel, increased 700,000 barrels to 142.6 million in the week ended January 19 while crude reserves rose 700,000 barrels to 322.2 million barrels, US figues showed.
The stockpiles are, however, expected to show a decline in next week's report after temperatures in the US fell in recent days with snow storms reported in many areas, dealers said.
"There was a bit of a surprise increase in the distillate numbers but with the cold, it might change in the next few weeks. Because of the colder weather, the market suspects that the inventory overhang might dissipate," said Bart Melek, an analyst at BMO Capital Markets.
INDIA TIMES
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