Oil prices down in Asian trade

SINGAPORE: Oil prices eased in Asian trade Thursday on a mixed US inventory report indicating tepid demand, while expectations of a return of Libyan supplies also weighed, analysts said.

New York’s main contract, West Texas Intermediate (WTI) for January delivery, was down four cents at $97.40 in afternoon trade while Brent North Sea crude for January eased three cents to $109.67.The US Department of Energy (DoE) said crude inventories fell 10.6 million barrels in the week ending December 6, more than four times the 2.5 million barrel decline estimated on average by analysts polled by Dow Jones Newswires.

But the drop in crude stocks, the second consecutive drawdown after a 10-week run of rises, was offset by bigger-than-expected increases in gasoline and distillates, weighing on the WTI contract. Gasoline supplies rose 6.7 million barrels and distillates, which include diesel and heating fuel, gained 4.5 million barrels.