WSJ:OIL FUTURES: Crude Tad Lower; US Stocks Data, Euro Woes Weigh
By Gurdeep Singh
Of DOW JONES NEWSWIRES
SINGAPORE (Dow Jones)--Crude-oil futures were a tad lower in Asia trade Thursday after a bearish U.S. fuel-products inventory report overnight while added to pressure on the market exerted by concerns over the euro-zone debt crisis.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in October traded at $88.15 a barrel at 0658 GMT, down $0.76 in the Globex electronic session. October Brent crude on London's ICE Futures exchange fell $0.62 to $111.78 a barrel.
Oil prices eased with most regional equity markets coming off early highs as caution persisted despite some easing of concerns about Greece's future after Germany and France pledged to keep the debt-laden nation in the euro zone.
Despite the easing fears over Greece and a stronger euro against the U.S. dollar, prices fell as the market focussed on bearish product data, discounting a bigger-than-expected decline in U.S. crude stocks as a seasonal blip driven by the recent hurricane season.
"A larger-than-expected increase in product stocks of almost 2 million barrels in gasoline and 1.7 million barrels in the distillates appeared to attract more attention than the crude supply," said Jim Ritterbusch at Ritterbusch & Associates.
On the demand side, consumption may fall short of most expectations during the coming months amidst "a destocking mentality related to continued euro-zone debt issues that show no immediate sign of being resolved," he said.
"The data also showed declines in demand that create worry over the health of the economic rebound," said MF Global analyst Tom Pawlicki in a note.
Nymex reformulated gasoline blendstock for October--the benchmark gasoline contract--fell 83 points to $2.7175 a gallon, while October heating oil traded at $2.9313, 137 points lower.
ICE gasoil for October changed hands at $925.00 a metric ton, up $3.00 from Wednesday's settlement.
-By Gurdeep Singh, Dow Jones Newswires; 65-6415 4064; gurdeep.singh@dowjones.com