Crude prices stay above US$80

SINGAPORE – Crude oil prices were lower in Asian trade yesterday but stayed above US$80 (N$560) per barrel as the peak Atlantic hurricane season remained a source of worry, dealers said.

New York’s main contract, light sweet crude for November delivery, fell 47 cents to US$81,15 US dollars per barrel from 81,62 in late US trades Friday. Brent North Sea crude for November delivery was off 43 cents at US$78,87 per barrel.”It’s still very strong,” said Victor Shum, a Singapore-based analyst with energy consultancy Purvin and Gertz.”Weather will be a key factor in the near term,” he said, referring to the current Atlantic hurricane season, which typically peaks in September and ends in November.New York oil prices struck a new peak of US$84,10 last week on fears a storm could threaten facilities in the Gulf of Mexico and because of tight supplies in the US, the world’s biggest energy user.The weaker US currency is also providing underlying support for oil prices as importing countries find it less expensive to purchase crude where the trade is denominated in dollars.”I think the door to 80 and beyond has opened …the weakening US dollar is also supportive of prices,” said Shum.”A weak US dollar makes oil look cheap in the oil consuming nations.”Tight US energy supplies also a concern, dealers said.The US Department of Energy has said that American crude inventories plunged by 3,8 million barrels in the week ending September 14.It was the 10th consecutive weekly drop and almost double analysts’ consensus forecast, which had predicted a fall of about two million barrels.Nampa-AFPBrent North Sea crude for November delivery was off 43 cents at US$78,87 per barrel.”It’s still very strong,” said Victor Shum, a Singapore-based analyst with energy consultancy Purvin and Gertz.”Weather will be a key factor in the near term,” he said, referring to the current Atlantic hurricane season, which typically peaks in September and ends in November.New York oil prices struck a new peak of US$84,10 last week on fears a storm could threaten facilities in the Gulf of Mexico and because of tight supplies in the US, the world’s biggest energy user.The weaker US currency is also providing underlying support for oil prices as importing countries find it less expensive to purchase crude where the trade is denominated in dollars.”I think the door to 80 and beyond has opened …the weakening US dollar is also supportive of prices,” said Shum.”A weak US dollar makes oil look cheap in the oil consuming nations.”Tight US energy supplies also a concern, dealers said.The US Department of Energy has said that American crude inventories plunged by 3,8 million barrels in the week ending September 14.It was the 10th consecutive weekly drop and almost double analysts’ consensus forecast, which had predicted a fall of about two million barrels.Nampa-AFP