Oil prices were mixed in Asian trade today in a market driven by healthy fundamentals and a focus on US refineries' return to production, traders said.
At 11:36 am (local time) New York's main oil futures contract, light sweet crude for delivery in May, was up 18 cents to 62.01 dollars per barrel from 61.83 dollars a barrel in late US trades, where it declined a hefty 1.30 dollars.
Brent North Sea crude for June delivery was down 37 cents to 65.57 dollars per barrel. Traders said the price falls were mainly tied to reports that US refiners were ratcheting up their output.
"In the near term, supply is sufficient to meet crude demand in the year's second quarter," said CFC Seymour senior investment strategist Dariusz Kowalczyk in Hong Kong.
China announced yesterday that its economy grew by 11.1 per cent in the first quarter compared with the first three months of 2006. Chinese Premier Wen Jiabao called for steps to prevent fast growth from leading to an overheated economy.
"Yesterday, investors were concerned over a slowdown in demand for commodities, including oil in China, and sold. But I think what the authorities have suggested that there will not be any sharp policy response... Demand for oil will continue to be very strong," Kowalczyk said.
He said the price divide between Brent and the New York contract will narrow as US refineries ramp up production.
BajaeNergyBLOGAt 11:36 am (local time) New York's main oil futures contract, light sweet crude for delivery in May, was up 18 cents to 62.01 dollars per barrel from 61.83 dollars a barrel in late US trades, where it declined a hefty 1.30 dollars.
Brent North Sea crude for June delivery was down 37 cents to 65.57 dollars per barrel. Traders said the price falls were mainly tied to reports that US refiners were ratcheting up their output.
"In the near term, supply is sufficient to meet crude demand in the year's second quarter," said CFC Seymour senior investment strategist Dariusz Kowalczyk in Hong Kong.
"Fundamentals are driving the market and the concerns over China are misplaced," he added.
China announced yesterday that its economy grew by 11.1 per cent in the first quarter compared with the first three months of 2006. Chinese Premier Wen Jiabao called for steps to prevent fast growth from leading to an overheated economy.
"Yesterday, investors were concerned over a slowdown in demand for commodities, including oil in China, and sold. But I think what the authorities have suggested that there will not be any sharp policy response... Demand for oil will continue to be very strong," Kowalczyk said.
He said the price divide between Brent and the New York contract will narrow as US refineries ramp up production.
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