Oil prices down in Asia

SINGAPORE: Oil prices fell in Asia Thursday, pressured by concerns about a global supply glut and a stronger dollar, analysts said. US benchmark West Texas Intermediate for November delivery slipped three cents to $90.70 while Brent crude for November eased 10 cents to $94.06 in afternoon trade.

Sanjeev Gupta, head of the Asia-Pacific oil and gas practice at business consultancy EY, said prices were hit by the "strengthening US dollar, which is at a four-year high against major currencies". The US dollar bought 108.75 yen in Asian trading on Thursday, against 108.91 yen in New York late Wednesday after earlier breaching the 110 yen briefly. However, it is still at highs not seen since 2008.A stronger greenback makes dollar-priced oil more expensive for buyers using weaker currencies, denting demand and pushing prices lower.

Singapore´s United Overseas Bank said dealers were also digesting "a clear manifestation of the over-supply environment" after Saudi Arabia on Wednesday lowered its official selling price for crude oil. Media reports said the kingdom, a key member of the OPEC oil producing cartel, reduced its November prices, marking the fourth straight month of cuts. The move indicated that the world´s top crude producer is more focused on maintaining market share, and is unlikely to cut output anytime soon to ease a global supply glut.

Saudi Arabia has 16 percent of the world´s proved oil reserves and produces 11.6 million barrels a day, according to official US government data. Gupta said dealers will next scrutinise US jobs figures to be released Friday. "Sentiment for crude oil appears bearish in the short term," he said.