Oil prices down ahead of US energy report

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SINGAPORE: Oil prices eased in Asia Thursday as dealers focused on an upcoming US energy report for clues about production and demand in the world’s top crude consumer amid abundant global supplies.

US benchmark West Texas Intermediate for October delivery fell 65 cents to $43.50 while Brent crude for October dropped 76 cents to $46.82 in late-morning trade.

“We have seen US production levels slowing in recent weeks, and those figures will next be in focus for investors seeking answers on the oversupply issue,” Ric Spooner, chief market analyst at CMC Markets in Sydney, told AFP.

The Department of Energy (DoE) will release its weekly report Thursday, a day later than usual because of Monday’s Labor Day holiday.


Analysts expect commercial crude-oil inventories rose 250,000 barrels in the week to September 4, according to a Bloomberg News survey.

At the same time, the DoE predicted in a new report Wednesday that US crude-oil production would decline through the middle of next year in response to low prices, before picking up again in late 2016 on an expected recovery in prices.

US crude output fell 140,000 barrels per day in August from July. The government lowered its 2015 production estimate to 9.2 million barrels per day, 100,000 barrels lower than its month-ago forecast.

Even so, total US output this year is expected to be the highest since 1972.

AFP

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