Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
New York's main contract, light sweet crude for delivery in June, dropped 33 cents to $93.97 a barrel and Brent North Sea crude for June delivery shed 16 cents to $103.52/FILE

World

Oil down in Asia on weak US production data

New York's main contract, light sweet crude for delivery in June, dropped 33 cents to $93.97 a barrel and Brent North Sea crude for June delivery shed 16 cents to $103.52/FILE

New York’s main contract, light sweet crude for delivery in June, dropped 33 cents to $93.97 a barrel and Brent North Sea crude for June delivery shed 16 cents to $103.52/FILE

SINGAPORE, May 16 – Oil was down in Asian trade Thursday as caution returned to the market following weak US production data, analysts said.

New York’s main contract, light sweet crude for delivery in June, dropped 33 cents to $93.97 a barrel and Brent North Sea crude for June delivery shed 16 cents to $103.52.

“Disappointing industrial production figures raised concerns that the US economy is not doing as well as other data have been suggesting,” Ric Spooner, chief market analyst at CMC Markets in Sydney, told AFP.

“Traders are taking a cautious approach. They are waiting for the release of more data like housing stats and job claims, which also have an influence on oil demand.”

US industrial production fell 0.5 percent in April, amid a decline in heating oil demand as temperatures returned to normal ranges after an unusually cold March, the Federal Reserve reported Wednesday.

The decline was sharper than the 0.2 drop expected by analysts, and followed two straight months of higher output, with March production up a revised 0.3 percent.

Both New York and Brent prices had closed higher on Wednesday after a US Energy Information Administration weekly report showed a surprise fall in crude oil supplies, indicating improving demand.

Stockpiles nevertheless remained high at 394.9 million barrels, and worries of soft global demand against a rising supply continued to cast a shadow over the markets.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...