Oil lower in Asian trade on eurozone worries

SINGAPORE: Oil prices edged lower in Asian trade Wednesday, weighed down by concerns over the eurozone's political and economic problems but bargain-hunting limited the losses, analysts said.

Crude futures also faced downside pressure following indications by the world's key oil producers they may boost output to bring prices down to sustainable levels.

New York's main contract, West Texas Intermediate (WTI) crude for delivery in June, was down 39 cents at $96.62 per barrel while Brent North Sea crude for June shed 58 cents to $112.15 in morning trade.

"Oil prices are holding relatively steady as we are seeing a fair bit of investor bargain-hunting in the crude market," said Victor Shum, senior principal at Purvin and Gertz international energy consultants in Singapore.

"But there remains considerable uncertainty about the eurozone's debt problems and politics," he added.

Investor concerns about the repercussions of weekend elections in Greece were heightened on Tuesday after the head of the country's left-wing Syriza party said his cabinet would reject all austerity measures imposed under an EU-IMF loan deal, if he managed to form a new government.

The political developments in Greece as well as in France - where Socialist Francois Hollande emerged victorious in Sunday's presidential election - have stoked anxiety about the fate of the eurozone's tough fiscal pact adopted in March to deal with a crippling debt crisis. (AFP)