Oil Prices Diverge on Mixed U.S. Data
Oil prices diverged in Asia on Thursday following a mixed US stockpiles report while analysts warned of further losses as the global supply glut shows no sign of easing.
The Department of Energy said Wednesday that commercial US crude supplies rose 0.3 percent last week, but gasoline inventories and domestic crude production dipped.
The result was a slight improvement on the previous week, which showed an increase in gasoline stocks as the peak US holiday driving season draws to a close, sending prices tumbling.
Both main crude contracts have plunged more than 20 percent from early June highs above $50 -- signalling the commodity is now in a bear market -- as fears over a long-running supply glut resurface.
At about 0700 GMT, US benchmark West Texas Intermediate was up seven cents at $40.90 a barrel but North Sea Brent dipped two cents to $43.08, reversing gains in the morning session.
"Signs of rising production from major producers bring bearish signals to the long-term market," said EY Services head of oil and gas Sanjeev Gupta.
He added that traders will now be closely watching the release of US jobs data Friday -- hoping for a fresh idea about the state of the world's top economy -- while China next week unveils figures on trade, investment and inflation.
After falling to a 12-year low of sub-$30 a barrel at the start of the year, prices regained ground on supply disruptions caused by wildfires in Canada key oil producing region and unrest in African producer giant Nigeria.
But the gains have reversed as those disruptions ease and worries about the world economy return, with Britain's vote on June 23 to leave the European Union fanning uncertainty.
Source: Agence France Presse
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