Oil prices dip in Asian trade on reports of US stockpiles building up

23-Jan-07

Oil prices slipped in Asian trade today as a buildup in US stockpiles eased concerns over heating fuel demand during the northern hemisphere winter. The market outlook is bearish in the short-term and crude inventories will continue to build due to warmer than normal winters. New York's main contract, light sweet crude for March delivery slipped by 4 cents to US$52.54 a barrel. The February contract expired a US$51.13. Brent North Sea crude for March was at 54.64 dollars, down six cents. The US cold snap in parts of the northeast after weeks of mild temperatures, is expected to raise demand for heating fuel, but the market remains convinced that the United States has plentiful reserves of petroleum products.