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WSJ:OIL FUTURES: Nymex Slightly Down In Asia On Dlr, Fundamentals
 
By Max Lin
Of DOW JONES NEWSWIRES

SINGAPORE (Dow Jones)--Crude-oil futures fell slightly amid thin trade in Asia Wednesday as the euro weakened, with supply-demand fundamentals providing little relief for bulls.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in August traded at $93.75 a barrel at 0644 GMT, down $0.42 in the Globex electronic session.

August Brent crude on London's ICE Futures exchange rose $0.12 to $111.07 a barrel.

"The recent North Sea supply disruption is still supporting Brent...but generally, people are still concerned about the Greek situation," said Ken Hasegawa, a commodity derivative sales manager with Newedge Japan.

In early trading, the euro fell against the dollar and the yen as European sovereign debt concerns weighed on sentiment. The Greek government survived a vote of confidence but market relief was short-lived as planned austerity measures still have to pass parliament and the issue of a second bailout package has yet to be resolved.

A stronger greenback typically adds downward pressure on dollar-denominated oil.

The market's focus will now be on weekly petroleum inventory data from the Energy Information Administration, due 10.30 a.m. EDT on Wednesday. Analysts forecast crude stocks to fall 800,000 barrels from a week ago, gasoline stocks to rise 800,000 barrels and distillate stocks to gain 500,000 barrels.

However, early signs aren't encouraging. The American Petroleum Institute, an industry trade association, reported crude stocks only dropped a slim 81,000 barrels.

"There is no natural buoyancy in the oil complex. Demand figures have not been strong and we still have more crude oil in storage than in previous years," Cameron Hanover said in a research note.

With economic recovery sputtering, there was little optimism in recent trading. Existing-home sales in May fell to a six-month low, while the median sales price dropped 4.6% from a year earlier, the National Association of Realtors said.

"All factors considered, we still see about $4-$5 left on the downside within both [Nymex and ICE] crude benchmarks," Ritterbusch & Associates said in a research note.

Nymex reformulated gasoline blendstock for July--the benchmark gasoline contract--rose 98 points to $2.8924 a gallon, while July heating oil traded at $2.8870, 30 points lower.

ICE gasoil for July changed hands at $912.75 a metric ton, down $8.50 from Tuesday's settlement.

-By Max Lin, Dow Jones Newswires; 65-6415-4063; max.lin@dowjones.com
Source