LONDON, Sept 13: World oil prices rose slightly on Wednesday, but after striking fresh multi-month low points on easing supply concerns, traders said. New York’s main contract, light sweet crude for delivery in October, climbed 43 cents to $64.19 per barrel in electronic deals in pit trading.
In London, Brent North Sea crude for October delivery gained 11 cents to $63.10 per barrel in electronic trading.Earlier on Wednesday, light sweet crude fell to $63.50, the lowest level since March 27. Brent dropped to $62.63, last seen on March 23.
Traders digested the latest US inventory data that showed stockpiles of crude oil fell over the past week but supplies of gasoline and refined products rose.
Falling oil prices are not uncommon at this time of year, when gasoline, or petrol, consumption traditionally tapers off and winter fuel demand has yet to accelerate, analysts noted.
But the market has been especially weak lately on fading supply worries, comfortable inventories, a mild Atlantic hurricane season, Opec's pledge to keep output unchanged and a lessening of tensions over Iran’s nuclear drive.
“This is a very seasonal correction, we're at a seasonal low point for product demand and a seasonal low point for crude demand,” Calyon analyst Mike Wittner said.
He added however that maintenance and cuts to refinery runs in Asia will eventually start to tighten product demand, while data indicates that Chinese demand remained solid in July.
Oil prices fell heavily on Tuesday on fears about slowing demand after the International Energy Agency lowered its world oil demand estimates for this year and next, and said oil consumption may be slowing for the first time in seven years.
Elsewhere, Nigeria's crude oil exports flowed without disruption on Wednesday despite the start of a three-day warning strike by the country’s two main oil unions, industry officials said.—AFP
