SINGAPORE – Oil was down in Asian trade Thursday with traders reaping profits after prices jumped more than one percent overnight, analysts said.
New York’s main contract, West Texas Intermediate (WTI) light sweet crude for March delivery, fell 15 cents to $101.65 per barrel and Brent North Sea crude for April delivery shed 32 cents to $118.61.
Traders capitalised on an overnight surge in prices, said senior commodities strategist for ANZ Research Nick Trevethan.
“It’s just a little bit of selling into strength,” he told AFP.
“The way I see it is there seems to be a bit of resistance at the $102 level for the WTI and for Brent around $119,” he added.
Crude prices had surged more than one percent in late US trade Wednesday, with the WTI closing 20 cents shy of $102 and Brent finishing at $118.93.
Despite the slight slip in early Asian trade Thursday, crude prices were well-supported by “a lot of very strong fundamentally supportive drivers,” Trevethan said.
Iranian threats to cut crude exports to six European Union countries, a pipeline explosion in Syria, a strike in Yemen’s biggest oil field and a dispute between Sudan and South Sudan were all supporting prices, he said.