Oil Prices Down in Asia as Stockpiles Rise
Oil prices fell in Asian trade Thursday on rising U.S. crude stockpiles while traders were also disappointed by muted stimulus measures from the Federal Reserve, analysts said.
New York's main contract, light sweet crude for August delivery, shed $1.09 to $80.36 a barrel in the afternoon of its first trading day and Brent North Sea crude for delivery in August retreated 47 cents to $92.22.
"The lack of fresh Fed stimulus, the downgrade to the U.S. outlook and an unexpected rise in U.S. inventories took their toll on the price," IG Markets said in a report.
The Fed on Wednesday announced that it was extending a program designed to push down interest rates on long-term bonds, encouraging investors to move money into more neglected securities and lowering costs for borrowers.
But traders had been hoping for a third round of asset purchases, or quantitative easing, to boost growth in the world's largest oil consumer.
The Fed's prediction that U.S. unemployment would remain above eight percent for at least the remainder of this year also added to the gloom.
Crude prices were also pressured by data showing a hike in U.S. crude inventories, Phillip Futures said in a report.
Official data Wednesday showed stockpiles rose 2.86 million barrels last week against analyst forecasts of a 1.1 million barrel decline.