By ERIC YEP
Crude-oil futures were largely steady in Asian trade Friday, after settling higher overnight, as investors remained cautious ahead of a key U.S. labor report that will indicate the pace of the U.S. Federal Reserve's stimulus withdrawal.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in October traded at $108.20 a barrel at 0636 GMT, down $0.17 in the Globex electronic session. October Brent crude on London's ICE Futures exchange fell $0.15 to $115.11 a barrel.
Nymex oil prices retained most of the previous day's gains on the looming Syrian crisis. West Texas Intermediate crude is around 25% lower from its record settlement high of $145.29 a barrel hit in July 2008 and Brent crude is 21% lower from its high of $146.08 a barrel.
World leaders at the G-20 summit in St. Petersburg Thursday remained divided over how to deal with the civil war in Syria, with Russia continuing to strongly oppose any U.S.-led military action.
U.S. politicians also appear undecided about backing a military strike on Syria, raising questions about how President Barack Obama will round up a majority at a congressional vote authorizing a strike.
Oil prices were also supported by a steeper-than-expected drop in U.S. oil inventories last week.
Crude inventories fell by 1.8 million barrels to 360.2 million barrels for the week ending Aug. 30, compared with a market estimate of 200,000 barrels, according to the U.S. Energy Information Administration's weekly report.
The report was structurally bearish, as markets are through the peak demand season for crude oil and gasoline and are now transitioning to the shoulder months, although supplies are high relative to seasonal norms, consulting firm The Schork Group said in a note.
For today, markets are focused on a highly anticipated U.S. labor report.
A strong jobs report would raise the chances of the Federal Reserve reducing its bond-purchase program this month and weigh on oil prices.
"Any disappointment would see the USD sold heavily. Whatever happens, the data will inform markets as to the timing and degree of Fed tapering," ANZ Research said, adding that expectations are heightened for a good result.
Nymex reformulated gasoline blendstock for October--the benchmark gasoline contract--fell 40 points to $2.8320 a gallon, while October heating oil traded at $3.1319, 78 points lower.
ICE gasoil for September changed hands at $959.50 a metric ton, down $4.25 from Thursday's settlement.
