Geo Business

Oil prices down in Asia

SINGAPORE: Oil prices dropped in Asian trade Thursday as investors took profits from an overnight rally powered by strengthening US energy demand. New York's main contract, West Texas Intermediate (WTI) light, sweet crude for delivery in August, was down $1.19 to $94.22 a barrel while Brent North Sea crude for August tumbled $1.00 to $113.21. "This is just basically a consolidation of prices, especially after a strong rally last night," said Serene Lim, a Singapore-based analyst at ANZ Bank. Crude prices rallied Wednesday after the US central bank decided to keep interest rates at near-zero levels "for an extended period" to boost the flagging US economic recovery. Prices were also supported by data showing stronger-than-expected energy demand in the United States, the world's biggest economy and the largest oil-consuming nation. The US Department of Energy (DoE) said in its weekly report that crude reserves sank 1.7 million barrels in the week ending June 17, much more than forecasts for a drop of 800,000 barrels. Gasoline stockpiles fell 500,000 barrels, while analysts had forecast a gain of 800,000 barrels. Gasoline figures are closely watched during the peak-demand driving season in the United States, with many Americans hitting the road for their summer holidays. (AFP)