Oil down in Asian trade

AP PHOTO

SINGAPORE – Oil was down in Asia on Wednesday as traders waited for the release of the latest energy inventory report from the United States, analysts said.

Weak demand and surging crude stockpiles in the world’s biggest economy have put downward pressure on prices and limited gains.

New York’s main contract, West Texas Intermediate light sweet crude for delivery in July, dropped 42 cents to $95.76 a barrel and Brent North Sea crude for July delivery shed 32 cents to $103.59.

“Dealers are squaring up before the release of the latest inventory report,” David Lennox, resource analyst at Fat Prophets in Sydney, told AFP.

“Those numbers for the last couple of weeks pointed to relatively weak US conditions apart from domestic production.”

The latest energy inventory report will be released later Wednesday from the United States, where stockpiles have outpaced demand.

An increase in inventory stocks indicates softer demand and normally leads to lower oil prices.

Dealers are also waiting for testimony in Congress later Wednesday by Federal Reserve chief Ben Bernanke on the US economy.

Global markets will closely watch Bernanke’s statements for an indication on when the Fed will start winding down its massive bond-buying programme to boost the economy.