Crude prices down in Asian trade

INQUIRER FILE PHOTO

TOKYO–Oil prices eased in Asian trade Thursday as the US economy stalled in the first quarter of this year while US crude stockpiles rose, suggesting weaker demand.

West Texas Intermediate (WTI) for June delivery slipped six cents to $99.68 a barrel.

Brent North Sea crude for June was down four cents to $108.03 a barrel.

The US government’s growth estimate for the January-March quarter came in much lower than expected, at an annual pace of 0.1 percent, suggesting the extremely severe winter weather virtually froze economic activity.

Adding to that was a rise in the Department of Energy’s weekly estimate of crude oil stocks, which gained 1.7 million barrels to 339.4 million barrels, the highest weekly level since 1982.

Ken Hasegawa, energy desk manager at Newedge brokerage in Japan, said “the trend has turned down”.

“This is not new but the biggest direct reason (for lower prices) is that US stockpiles of crude oil have risen,” he said.

The Federal Reserve, after a two-day policy meeting, confirmed the recent weakness in the US but said that economic activity “has picked up recently,” injecting some optimism into the market.

Downward pressure on prices also came from the expected resumption of oil exports from a key terminal in Libya, the Zueitina port, which has been blocked by rebels for months.