Crude oil prices rise as investors cast eye on U.S. weather
Crude oil prices rise as investors cast eye on U.S. weather
Agence France-Presse, Singapore
Crude oil futures edged up slightly in Asian trade on Tuesday after dropping by almost three dollars overnight amid reports of mild U.S. winter conditions, dealers said.
At 08:05 GMT (or 15:05 Jakarta time), New York's main contract, light sweet crude for delivery in February was 28 U.S. cents higher at US$41.60 a barrel from its settlement of $41.32 in New York where it had dropped $2.86.
The devastating earthquake and tsunamis that hit south and southeastern Asia have had little impact on prices so far as investors continue to keep a close watch on U.S. winter conditions.
Last week's surprising rise in U.S. petroleum stocks remain a huge factor, dealers said.
"Oil prices are still feeling heavy since the release of last week's stocks report from the (U.S.) department of energy," said Phil Flynn, an energy analyst with Chicago-based Alaron Trading.
The U.S. government report last week showed U.S. crude oil inventories rose 2.1 million barrels to 295.9 million in the week ending Dec. 17.
Distillates -- mostly heating fuel and diesel -- rose 600,000 barrels to 119.9 million, surprising analysts who had predicted a drop. Heating fuel stockpiles were flat at 49.9 million, the U.S. Department of Energy said.
Gasoline inventories rose 1.8 million barrels to 211.4 million.
Analysts say the weekly release of U.S. energy stocks, due Wednesday, and weather conditions in the country are the main issues to watch out for.
A key concern will be whether the mild winter temperatures in the eastern United States will continue, analysts said.
"Also, right now we are going to be going into a pretty mild (weather) period in the eastern half of the country. I think it is going to be a pretty short-lived respite from the cold," said Refco market analyst Marshall Steeves.
Sunday's earthquake and the devastation around Asia as a result were also unlikely to hit the oil market with any force, Steeves said.
"As a matter of fact it may just lower demand a little bit," Steeves said.
"It remains to be seen if oil shipping was seriously unhinged by it but I actually think it may be a quelling factor on demand."
In other separate developments, the market also appeared to be more relaxed about exports from Russia now that Moscow had taken over oil giant Yukos, analysts said.
Russia's anti-monopoly agency on Saturday approved state oil company Rosneft's acquisition of embattled Yukos oil giant's core asset, Yuganskneftegaz, owner of 17 percent of Russia's vast oil reserves.