Oil prices edge up in Asia

AFP, SINGAPORE: Oil prices rebounded in Asia yesterday on bargain-hunting on the last trading day of 2015 following a sharp decline fuelled by an unexpected rise in US commercial stockpiles.
The commodity headed for another annual loss caused by a stubborn global supply glut and weak demand.
Data from the US Department of Energy showed inventories climbed 2.6 million barrels to 487.4 million in the week ending December 25, confounding forecasts for a drop.
The inventories, a gauge of demand in the world’s top oil consumer, are stuck near record levels and are up 26.5 per cent from a year ago.
US benchmark West Texas Intermediate (WTI) for
delivery in February edged up six cents to $36.66 and Brent added 14 cents to $36.60 by around 0545 GMT, giving up some of the morning’s gains.
Both contracts slumped more than three per cent on the US data Wednesday. WTI has lost 31 per cent and Brent 36 per cent of its value this year. In 2014, WTI lost 46 per cent and Brent 48 per cent.
“Thursday’s price rise comes from short-covering and consolidation after the steep decline on Wednesday,” said Daniel Ang, an analyst with Phillip Futures in Singapore.
“I think the renewed decline in oil could affect sentiment over energy stocks in Asia today, although we are likely to see very low volumes on the last trading day of the year,” said Bernard Aw, market strategist at IG Markets in Singapore.
“I feel we are going to see a very quiet Asia.”
Oversupply remains a concern well into 2016 after Organization of the Petroleum Exporting Countries in early December effectively rejected calls to
cut its high output levels to revive prices.

Oil prices edge up in Asia

AFP, SINGAPORE: Oil prices rebounded in Asia yesterday on bargain-hunting on the last trading day of 2015 following a sharp decline fuelled by an unexpected rise in US commercial stockpiles. The commodity headed for another annual loss caused by a stubborn global supply glut and weak demand. Data from the US Department of Energy showed inventories climbed 2.6 million barrels to 487.4 million in the week ending December 25, confounding forecasts for a drop. The inventories, a gauge of demand in the worlds top oil consumer, are stuck near record levels and are up 26.5 per cent from a year ago. US benchmark West Texas Intermediate (WTI) for delivery in February edged up six cents to $36.66 and Brent added 14 cents to $36.60 by around 0545 GMT, giving up some of the mornings gains. Both contracts slumped more than three per cent on the US data Wednesday. WTI has lost 31 per cent and Brent 36 per cent of its value this year. In 2014, WTI lost 46 per cent and Brent 48 per cent. Thursdays price rise comes from short-covering and consolidation after the steep decline on Wednesday, said Daniel Ang, an analyst with Phillip Futures in Singapore. I think the renewed decline in oil could affect sentiment over energy stocks in Asia today, although we are likely to see very low volumes on the last trading day of the year, said Bernard Aw, market strategist at IG Markets in Singapore. I feel we are going to see a very quiet Asia. Oversupply remains a concern well into 2016 after Organization of the Petroleum Exporting Countries in early December effectively rejected calls to cut its high output levels to revive prices.