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Oil mixed in Asia, fears about global economy persist

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AFP PTI Singapore
Last Updated : Jan 20 2013 | 7:17 PM IST

Oil prices were mixed in Asian trade today amid continued pessimism over the state of the global economy, analysts said.

New York's main futures contract, light sweet crude for February delivery, was down 25 cents to $37.34 a barrel on the New York Mercantile Exchange.

Brent North Sea crude for February delivery gained two cents to $42.93.

"Some of the very supportive factors that have kept oil prices high have gone away," said Dave Ernsberger, senior Asian editorial director with Platts energy information group.

The bleak economic situation has exacerbated the traditionally weak demand for oil at this time of year, said Ernsberger.

Prices had tumbled last week after a brief bounce above $50 on the back of jitters over the Russia-Ukraine gas standoff and the ongoing fighting in Gaza.

Russia had accused Ukraine of illegally siphoning off gas destined for Europe after Moscow cut off gas supplies to Ukraine's domestic market on New Year's Day.

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"The gas conflict in Europe is one of the reasons that Brent crude is trading at a premium to WTI," the West Texas Intermediate crude traded in New York," said Phil Flynn at Alaron Trading.

"The bottom line is that we have a glut of crude globally. The Brent crude may fall after the EU situation is handled," he added.

Russia was due to resume pumping gas to the European Union today.

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First Published: Jan 13 2009 | 11:31 AM IST

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