Oil hovers below $77 in Asia as crude demand from developed countries lags
By Alex Kennedy, APThursday, February 4, 2010
Oil hovers below $77 amid sluggish US crude demand
SINGAPORE — Oil prices hovered below $77 a barrel Thursday in Asia amid investor concern that sluggish economic growth in developed countries will keep crude demand muted.
Benchmark crude for March delivery was down 3 cents at $76.95 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract lost 25 cents to settle at $76.98 on Wednesday.
Crude has traded in the $70s since touching $84 last month as investors wait for signs of a demand rebound before bidding prices higher. Demand for distillates, such as diesel fuel used for shipping, has remained subdued in the U.S. and Europe.
“The absence of any tangible recovery in OECD distillates demand thus far is one of the key factors behind the inability of prices to explore higher trading ranges,” Barclays Capital said in a report.
On Wednesday, the Energy Department’s Energy Information Administration said U.S. crude inventories rose 2.3 million barrels. Analysts had expected a drop of 1.0 million barrels, according to a survey by Platts, the energy information arm of McGraw-Hill Cos.
In other Nymex trading in March contracts, heating oil was steady at $2.02 a gallon, and gasoline fell 0.53 cent to $2.03 a gallon. Natural gas rose 1.1 cents to $5.43 per 1,000 cubic feet.
In London, Brent crude was down 14 cents at $75.78 on the ICE futures exchange.
