Oil Prices Up in Asia
Oil prices rose in Asia on Friday after recent heavy falls, but analysts said any gains are likely to be limited by plentiful global supplies.
U.S. benchmark West Texas Intermediate for February delivery was up 43 cents at $49.22 a barrel in afternoon trade and Brent crude for February gained 34 cents to $51.30.
Brent, the more international benchmark of oil prices, on Wednesday briefly slipped below $50 for the first time since 2009.
Confidence was given a much-needed boost by minutes from the Federal Reserve's December meeting suggesting the U.S. central bank will not hike interest rates before April.
Analysts, however, warn that a glut of global supplies and low demand in major economies such as India and China will continue to weigh on oil prices.
"There is still no indication that U.S. shale production will be reduced or that there will be sudden surge in global demand for oil," said Shailaja Nair, associate editorial director at energy information provider Platts.
In a research note, analysts from Germany's Commerzbank said not to expect a permanent reversal in the downward trend in crude prices.
Oil has lost more than half its value since June when prices were well above $100 a barrel.
The slump has hit exporters hard, but analysts say lower prices will be a boost to oil-importing countries worldwide.
Rajiv Biswas, Asia Pacific chief economist at international consultancy IHS, said oil importing industrial nations in Asia will likely be the biggest winners from cheaper crude.
"The slump in world oil prices represents an estimated transfer of around $1.5 trillion from global oil producing countries to oil importing countries," he said.
Source: Agence France Presse
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