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Crude oil eases

in Asia

SINGAPORE: Crude oil prices in Asia eased in a technical correction to sharp gains in New York overnight.

However, traders said sentiment was underpinned by low US oil stocks and the prospect that more Asian and MidEast cargoes could head into the more expensive US market following the bullrun in WTI prices.

Prompt crude prices in NYMEX after hours trading system ACCESS was bid/asked at $24.02/24.18 per barrel against its previous close at $24.21. Cash May was assessed at $22.00/22.10 in line with SIMEX.

Brent/Dubai spread widened further with June at $2.10/2.20 and July at $1.40/1.50. Overnight, a US major was said to have secured a cargo of May Dubai at whole month Dubai quotes plus 59 cents. Traders estimated only one cargo of May Dubai was left.

While most offers of spot June Oman edged up to 15 cents premium, one Japanese trader was said around 10 cents over the official selling price. The market gained on anticipation that the US could absorb at least six June Oman cargoes. Potential bids were heard around eight cents premium. Overnight, a Japan refiner sold May Oman at 15 cents premium, down more than 10 cents from the last known deal for May barrels.

Offers of Malaysian crudes stayed firm on supply disruptions in Australia due to bad weather and potential US interest.

Overnight, 100,000 to 150,000 barrels of April lifting Widuri were sold to a Japanese enduser at ICP plus 15/20 cents. Indonesia's Pertamina denied rumours that the 95,000-100,000 barrels per day Widuri production would be forced to shutin due to high inventory caused by weak demand.-Reuter