Aug 26, 2011

Oil Mixed Ahead of Bernanke Speech


Oil was mixed in Asian trade on Thursday ahead of a speech by US Federal Reserve chief Ben Bernanke, analysts said.
Prices were also underpinned by ongoing unrest in Libya with analysts saying the North African country may take longer than expected to get its crude production facilities back to normal.

New York's main contract, West Texas Intermediate light sweet crude for October delivery fell nine cents to $85.07 a barrel and Brent North Sea crude for October delivery was 10 cents up at $110.25.
"Over the coming week, crude markets will be looking for clearer information on the condition of the Libyan oil and gas infrastructure," said Sanjeev Gupta, who heads Ernst & Young's Asia-Pacific oil and gas practice.
Oil prices could drop temporarily if the crisis in the oil-rich North African nation eases, or if leader Moamer Kadhafi is caught, said SEB Commodity Research analyst Filip Petersson.
"Bearish influences could come from Libya -- eg if Kadhafi is caught -- but these are likely to be short-lived as the market is starting to realise that Libya is highly unlikely to be back at pre-war capacity anytime soon," he said.
Meanwhile, investors were watching for Friday's speech by Bernanke, which will be scrutinised for signs of whether he will support new stimulus measures to juice the sluggish economy.
The United States is the world's biggest consumer of oil.

Source : AFP

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