Oil prices mixed as market focuses on soft demand
Wednesday, January 7, 2009 at 2:19 pm
NEW YORK: Oil prices were mixed Tuesday as market concerns about soft demand eclipsed supply concerns amid rising geopolitical tensions in the oil-rich Middle East and a gas war between Russia and Ukraine.
New York’s main contract, light sweet crude for February, fell 23 cents a barrel to close at 48.58 dollars on the New York Mercantile Exchange.
In London, Brent North Sea crude for delivery in February rose 91 cents to settle at 50.53 dollars on the InterContinental Exchange.
“There was probably some profit taking, bolstered by the latest economic statistics which are negative. They highlighted the weakness of demand, while recently the market has been preoccupied by supply,” said Antoine Halff, an analyst at Newedge Group.
US data showed a moderating decline in the huge services sector and a continued fall in industrial orders.
Oil prices had found support above 50 dollars a barrel during the session on supply worries due to deepening geopolitical frictions, analysts said.
The New York futures contract hit an intra-day peak of 50.47 dollars and Brent leapt to 52.21 dollars, a level last seen on December 1.
Oil prices have firmed amid the Israel-Hamas conflict in the Gaza Strip and an escalating Russia-Ukraine gas war that is curbing supplies to Europe, analysts said.
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