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Oil steady in Asia ahead of US inventory report

By ALEX KENNEDY

posted: 21 MINUTES AGO

comments: 0

Text SizeAAA

SINGAPORE -Oil prices were steady Thursday in Asia above $109 a barrel as investors waited for a weekly U.S. crude inventory report for evidence that slowing economic growth has cut demand.

Light, sweet crude for October delivery was up 19 cents to $109.54 a barrel in electronic trading on the New York Mercantile Exchange midday in Singapore. The contract overnight fell 36 cents to settle at $109.35.

The U.S. Energy Department's Energy Information Administration is scheduled to release its report on U.S. oil stocks for the week ended Aug. 29 later in the day. The petroleum supply report was expected to show that oil stocks rose by 500,000 barrels, according to the average of analysts' estimates in a survey by energy information provider Platts.

The Platts survey also showed that analysts projected gasoline inventories fell 1.8 million barrels and distillates went up 1.1 million barrels during last week.

"I expect the U.S. numbers to show oil demand is weakening," said Tetsu Emori, commodity markets fund manager at ASTMAZ Futures Co. in Tokyo. "The impact from Gustav will be seen in next week's numbers."

Energy output in the Gulf of Mexico began to slowly come back online after the passage of Hurricane Gustav. Some oil companies in the western Gulf whose equipment wasn't in the path of the storm began ramping up operations Wednesday.

However, about 96 percent of oil production in the Gulf and about 92 percent of natural gas output remained shut down on Wednesday, according to the U.S. Minerals Management Service, as energy firms assessed platforms, rigs and pipelines and worked to redeploy evacuated workers. The Gulf area is home to a quarter of U.S. oil production and 40 percent of refining capacity.

Crude has dropped about $38, or 26 percent, since surging to a record $147.27 a barrel on July 11, as a U.S. economic slowdown spreads overseas and curbs demand for petroleum products.

"Consuming countries like the U.S. and Japan are facing economic problems," Emori said. "I think we're heading toward $100 a barrel and if we break that, to between $88 and $95."

Weighing on oil has been a stronger dollar versus the euro. A rising dollar encourages investors who bought oil as a hedge against inflation to sell. The euro was steady Thursday at 1.4516 against the dollar while the dollar was little changed at 108.01 yen.

In other Nymex trading, heating oil futures fell 0.45 cent to $3.0743 a gallon, while gasoline prices rose 0.03 cent to $2.7671 a gallon. Natural gas for October delivery gained 1.2 cents to $7.276 per 1,000 cubic feet.

In London, October Brent crude rose 28 cents to $108.34 a barrel on the ICE Futures exchange.

2008-09-03 09:38:47

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AntiNeocons1 01:02:18 AM Sep 04 2008

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Right Wingers who refuse to fund for research to find the cure for Downsyndrome kids and now they are using them as election toys

TandLarr 01:00:39 AM Sep 04 2008

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JerryC09 12:57:49 AM Sep 04 2008 Report This! "TandLarr 12:54:00 AM Sep 04 2008 posters. in the upcoming weeks you will most likely see obama supporters attacking sarah palin. they will most likely claim to support ron paul. do not be fooled. this technique could be used to allow the obama camp to sling mud at palin without damaging obama's "image""___________________________________________________Are they the same ones that said that Obama was a Muslim, and then afterwards claimed he was a Radical Rascist Xian????============== nope, i never called obama a muslim. however, i do find his cowardess highly distasteful. rev wright has preached and published hatred of jews. why hasnt obama stood up for the jewish americans? so sad

AntiNeocons1 12:59:07 AM Sep 04 2008

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Palin is a reincarnation of Leona Helmsely/ oops sorry It is Rush Limbaugh's ghost

TandLarr 12:58:10 AM Sep 04 2008

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JerryC09 12:55:03 AM Sep 04 2008 Report This! "TandLarr 12:47:27 AM Sep 04 2008 all comments are opinion of course. the obama media black-out has made certainty and facts a thing of the past"______________________________________________True ... and it is a crying shame, after all the truth and honesty we received from the Bush administration. Where is Brownie and why isn't HE running for the VP slot now?==== both sides have failed us. but, i see new blood in the party. i think we should give palin a shot. see what she has to say

AntiNeocons1 12:57:51 AM Sep 04 2008

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Since when are these Right Wingers started worshipping premarital sex and Pregnancies? How many abortions did she have? Hypocritical Idiots

JerryC09 12:57:49 AM Sep 04 2008

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"TandLarr 12:54:00 AM Sep 04 2008 posters. in the upcoming weeks you will most likely see obama supporters attacking sarah palin. they will most likely claim to support ron paul. do not be fooled. this technique could be used to allow the obama camp to sling mud at palin without damaging obama's "image""___________________________________________________Are they the same ones that said that Obama was a Muslim, and then afterwards claimed he was a Radical Rascist Xian????

AntiNeocons1 12:56:35 AM Sep 04 2008

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Palin is a bridge to no where

TandLarr 12:55:51 AM Sep 04 2008

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do not let "big media" , the controllers of information, keep you blind

JerryC09 12:55:03 AM Sep 04 2008

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"TandLarr 12:47:27 AM Sep 04 2008 all comments are opinion of course. the obama media black-out has made certainty and facts a thing of the past"______________________________________________True ... and it is a crying shame, after all the truth and honesty we received from the Bush administration. Where is Brownie and why isn't HE running for the VP slot now?

AntiNeocons1 12:54:43 AM Sep 04 2008

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Dickie said McCain's gas holiday is a joke

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