SINGAPORE (APP) – Oil prices were mixed in Asia Thursday as lingering worries over the crude supply glut held down gains sparked by stronger US demand and a falling dollar, analysts said.
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US benchmark West Texas Intermediate for September delivery dropped three cents to $43.27 and Brent crude for September gained six cents to $49.72 in midday trade.
Prices had edged higher from six-year lows on Wednesday on news that US crude supplies fell — a sign of stronger demand — and the dollar declined.
The US Department of Energy Wednesday said the estimated amount of crude oil in the country’s commercial storage tanks tumbled 1.7 million barrels to 453.6 million barrels in the week ending August 7.
The report also said US domestic oil production fell 70,000 barrels a day to about 9.4 million barrels, which is positive for oil prices in an oversupplied market.
A weaker US currency makes dollar-priced oil cheaper for holders of other units, perking up demand and supporting prices.
But analysts said gains in oil in New York, where prices edged up Wednesday from six-year lows, were being held back by continued concerns over a glut in the world crude market.
“The market is just bearish overall,” said Daniel Ang, an investment analyst with Phillip Futures in Singapore.
“There’s still no big change to the supply and demand fundamentals in the oil market,” he told AFP.