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Oil prices mixed in Asian trade

Oil prices mixed in Asian trade

Crude prices were mixed in Asian trade yesterday but remained within striking distance of US$79, with analysts saying gains were being muted by a stronger U.S. currency.
New York's main futures contract, light sweet crude for delivery in February, was down US$0.07 to US$78.80 a barrel in morning trade.
Brent North Sea crude for February delivery was up US$0.01 to US$77.65.
A stronger dollar was dampening traders' sentiment, analysts said.
Oil is traded in U.S. dollars and a strengthening greenback makes the commodity more expensive for holders of weaker units, leading to lower demand.
"I think some of the U.S. dollar strength is dropping oil prices a little bit," said Ben Westmore, a minerals and energy economist with the National Australia Bank in Melbourne.
Analysts said markets were also looking for leads from the weekly U.S. Department of Energy report on the country's stockpiles, due for release later Wednesday.
The market is expecting a drop in inventories because of higher demand for heating fuel during the northern hemisphere's winter.
"We had some cold weather in the (U.S.) and there is an expectation of a distillates inventories decline, as well as a crude oil inventories decline as we head towards the end of the year," said analyst Andy Lipow of Lipow Oil Associates.


Updated : 2021-04-21 14:27 GMT+08:00