Oil prices slips after most of Asia returns from the Lunar New Year holiday

23-Feb-15

Oil prices dipped in early Asian trade on Monday after much of the region returned from the Lunar New Year holiday, as per Reuters. Benchmark Brent crude was trading at US$60, down 10 cents from their last settlement, while U.S. WTI crude was down 20 cents at US$50.61 a barrel. Although most of the region is back from the Lunar New Year, markets in mainland China do not reopen until Wednesday. Although both U.S. WTI and international Brent prices dipped in the past week, American contracts have fallen more sharply largely in response to the record inventories. This has pulled WTI's discount on Brent to over US$9.50 a barrel, up from parity and even a short-lived premium late last year. Yet analysts said they expected U.S. prices to recover later this year, once the falling rig count translates into lower output.