Oil prices fall in Asian trade

AFP, SINGAPORE: Oil prices tumbled in Asia yesterday, cutting short a rally the day before after hints of an interest rate hike in December by the US Federal Reserve boosted the dollar.
Prices rose Wednesday after the US Department of Energy said the country’s commercial crude stockpiles had increased less than expected, suggesting stronger demand in the world’s top oil consuming nation.
But the rebound was punctured after the Fed on Wednesday signalled it could raise rates before the end of the year, expressing optimism for the world’s top economy after “solid” consumer spending and business investment.
“With the Federal Reserve holding off on interest rates hikes on Wednesday, the market will keep watch on the December meeting where a rate hike is likely in play,” said Sanjeev Gupta, head of the Asia Pacific oil and gas practice at professional services firm EY.
At around 0615 GMT, US benchmark West Texas Intermediate for delivery in December was trading 25 cents lower at $45.69 and Brent crude for December was down 23 cents at $48.82.
US oil prices jumped more than six per centin Wednesday’s session after news domestic crude supplies rose less than expected in the week ending October 23.
The news helped ease some fears over a glut of world supplies that experts warn could last well into next year, which has seen oil prices more than halve from last year’s highs.

Oil prices fall in Asian trade

AFP, SINGAPORE: Oil prices tumbled in Asia yesterday, cutting short a rally the day before after hints of an interest rate hike in December by the US Federal Reserve boosted the dollar. Prices rose Wednesday after the US Department of Energy said the countrys commercial crude stockpiles had increased less than expected, suggesting stronger demand in the worlds top oil consuming nation. But the rebound was punctured after the Fed on Wednesday signalled it could raise rates before the end of the year, expressing optimism for the worlds top economy after solid consumer spending and business investment. With the Federal Reserve holding off on interest rates hikes on Wednesday, the market will keep watch on the December meeting where a rate hike is likely in play, said Sanjeev Gupta, head of the Asia Pacific oil and gas practice at professional services firm EY. At around 0615 GMT, US benchmark West Texas Intermediate for delivery in December was trading 25 cents lower at $45.69 and Brent crude for December was down 23 cents at $48.82. US oil prices jumped more than six per centin Wednesdays session after news domestic crude supplies rose less than expected in the week ending October 23. The news helped ease some fears over a glut of world supplies that experts warn could last well into next year, which has seen oil prices more than halve from last years highs.