Oil lower in Asian trade

September 28, 2009
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, SINGAPORE, Sept 28 – Oil fell in Asian trade amid lingering worries over energy demand in the United States, the world\’s biggest oil user, analysts said.

New York\’s main contract, light sweet crude for November delivery, dropped 45 cents to 65.57 dollars a barrel.

Brent North Sea crude for November delivery was off 47 cents at 64.64 dollars.

Concerns over US energy demand are resurfacing after data released Friday showed orders for durable goods fell 2.4 percent in August against market expectations for a rise of 0.4 percent.

Durable goods are those likely to last three years or more, such as cars and appliances, and represent a key segment of the manufacturing sector.

"International economic news was generally on the disappointing side of market expectations, leaving metal and oil markets lacking impetus," analysts from the Commonwealth Bank of Australia said in a report.

"The US economic data failed to allay concerns that US oil demand remains tepid," they said.

Looking ahead, investors will be watching for a slew of US data due out this week including the key non-farm payroll figures and the unemployment rate for September expected to be released Friday.

"The key focus of the week is, as always, the non-farm payrolls and unemployment reports due Friday," Singapore\’s DBS bank said in a report.

Market expectations are for about 180,000 job losses in September, which would be an improvement from August when 216,000 jobs were lost.

The monthly payrolls report is seen as one of the best indicators of economic momentum in the world\’s biggest economy.

DBS bank has forecast the US unemployment rate to rise to 9.8 percent in September from 9.7 percent in August.

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