Oil dips in Asia on signs of building inventories
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http://finance.yahoo.com/news/Oil-dips-in-Asia-on-signs-of-apf-14736758.html
- Analysts expect a build up of 1.4 million barrels in commercial crude oil stocks in the U.S, the world's largest energy consumer, a Platts survey showed.
- "That is bearish news," Shum said. "Some caution has crept into the market and expectations that the U.S. government inventory report will show an increase will likely put downward pressure on oil pricing."
- Wall Street declined slightly Tuesday, and Asian markets were mixed Wednesday as investors took stock of the recent rally. Analysts said if more good news emerges, stocks could keep climbing. But if they fall back in coming days, oil will likely follow.
- "I am not convinced that oil (pricing) is turning around. It's a short spike on the back of the stock market rally but eventually I expect it to fall back below $50," said Clarence Chu, a trader with market maker Hudson Capital Energy in Singapore.
- With effects of the OPEC production cuts and a global economic recovery likely to kick in late in the year, Chu said he foresee oil demand and price to only bounce back by the second half.
- Russian Finance Minister Alexei Kudrin also warned Tuesday that the recent rise in oil and stock prices may be "temporary."
- But the oil rally led China on Tuesday to raise its benchmark retail price of gasoline and diesel fuel.
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http://finance.yahoo.com/news/Oil-dips-in-Asia-on-signs-of-apf-14736758.html
- Analysts expect a build up of 1.4 million barrels in commercial crude oil stocks in the U.S, the world's largest energy consumer, a Platts survey showed.
- "That is bearish news," Shum said. "Some caution has crept into the market and expectations that the U.S. government inventory report will show an increase will likely put downward pressure on oil pricing."
- Wall Street declined slightly Tuesday, and Asian markets were mixed Wednesday as investors took stock of the recent rally. Analysts said if more good news emerges, stocks could keep climbing. But if they fall back in coming days, oil will likely follow.
- "I am not convinced that oil (pricing) is turning around. It's a short spike on the back of the stock market rally but eventually I expect it to fall back below $50," said Clarence Chu, a trader with market maker Hudson Capital Energy in Singapore.
- With effects of the OPEC production cuts and a global economic recovery likely to kick in late in the year, Chu said he foresee oil demand and price to only bounce back by the second half.
- Russian Finance Minister Alexei Kudrin also warned Tuesday that the recent rise in oil and stock prices may be "temporary."
- But the oil rally led China on Tuesday to raise its benchmark retail price of gasoline and diesel fuel.