Oil prices mixed in Asia

SINGAPORE: Oil prices were mixed in Asia Thursday as eurozone fears and a sharp spike in US crude inventories weighed on markets, analysts said.

New York's main contract, light sweet crude for delivery in September dipped 18 cents to $88.79 a barrel while Brent North Sea crude for September delivery gained 25 cents to $104.13.

Crude prices fell as "events in Europe seem to be limiting the upside," said Nick Trevethan, senior commodities strategist for ANZ Research.

Dark clouds were gathering again after Spain sought French support Wednesday in the face of its soaring borrowing costs, while a slump in German confidence and a worsening British recession exacerbated the situation.

Meanwhile, in Greece Prime Minister Antonis Samaras warned on Tuesday that the recession in Athens was set to be much worse than expected with the economy shrinking by "more than seven percent".

Energy demand in the US was also raising red flags for oil traders, with stockpiles in the world's biggest oil consumer spiking despite expectations of a drawdown, said Trevethan.

"US crude supply rose significantly overnight... the market had been looking for a fall," he said.

US crude inventories had jumped 2.7 million barrels last week, defying forecasts of a modest draw, data released by the Energy Information Administration showed. (AFP)