Oil prices held above $43 a barrel in Asia today after United States commercial crude supplies rose at a slower pace, while jitters lingered over the shooting down by Turkey of a Russian warplane.
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Turkey shot down a Russian warplane near the Syrian border on Tuesday, saying the jet had violated its air space.
Futures fell 3.1% in NY.
Oil has slumped 37% in the past year as US crude inventories climbed to near a record and the Organization of Petroleum Exporting Countries pumped above its quota to defend market share.
Worrying economic indications in the world’s largest energy consumer typically filter quickly through to oil prices, particularly given the nagging global surplus of physical oil.
The flat to slightly positive moves in benchmark prices appeared to be in line with sideways trading for the dollar index, said Ric Spooner, chief market analyst at CMC Markets in Sydney, after a few volatile sessions. Distillate product supplied averaged over 3.9 million barrels a day over the past four weeks, up by 2.1% when compared with the same period a year ago.
Brent crude fell by 5 cents (U.S.) to $45.41 per barrel by 1311 GMT, after settling down 71 cents at $45.46 in the previous session.
So it may be with more than a little disbelief that market observers view the latest news from Saudi Arabia, even though the immediate reaction triggered nominal increases to Brent and WTI futures on Monday.
US crude was supported by the smaller-than-expected build in USA inventories, with stocks rising 1 million barrels in the week to November 20 for a ninth consecutive weekly rise.
Mr. Wittner said he doesn’t believe there will be “any change in Saudi or OPEC policy“, when the 12-nation oil cartel meets in December.
Meanwhile, ANZ said in a note on Wednesday that investor sentiment had improved modestly as an upcoming OPEC meeting raised some hope of modest production cuts after Saudi Arabia had spoken about cooperating with other producers to maintain price stability.
US production of both oil and natural gas increased in 2014. While the fate of crude oil prices largely relies on the OPEC’s meeting next month, the raised USA interest rates, Iran’s entry in the global market, and weak Chinese demand all point to the likelihood that crude prices will remain depressed.
“However, it is unlikely that the tensions will escalate given the trade importance between the two countries, which means we should see a diplomatic solution”, he told AFP.
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Aluminium was up 2.8 per cent at $US1,501, tin gained one per cent to $US14,900 and lead rose 1.6 per cent to $US1,641 a tonne.
