AFP, Singapore :
Oil prices resumed their declines in Asia Wednesday following a US report showing stockpiles surged last week, with analysts warning for further weakness ahead.
Ahead of an official report, the industry-funded American Petroleum Institute (API) said stockpiles had increased by 2.3 million barrels last week.
US benchmark West Texas Intermediate for September delivery fell 70 cents to 50.16 a barrel and Brent crude for September tumbled 53 cents to $56.51 in late-morning Asian trade.
Both contracts had posted gains Tuesday.
“Crude prices remain under pressure as the supply overhang continues to persist,” said Bernard Aw, market strategist at IG Markets Singapore.
Wednesday’s official Energy Information Agency data “will be closely monitored, although it is evident that the supply glut problem is expected to stay for a while longer”, Aw added.
Oil prices have tumbled from more than $100 a barrel in June last year as strong production from the United States and the Organization of the Petroleum Exporting Countries led to supplies outpacing demand.
Oil prices resumed their declines in Asia Wednesday following a US report showing stockpiles surged last week, with analysts warning for further weakness ahead.
Ahead of an official report, the industry-funded American Petroleum Institute (API) said stockpiles had increased by 2.3 million barrels last week.
US benchmark West Texas Intermediate for September delivery fell 70 cents to 50.16 a barrel and Brent crude for September tumbled 53 cents to $56.51 in late-morning Asian trade.
Both contracts had posted gains Tuesday.
“Crude prices remain under pressure as the supply overhang continues to persist,” said Bernard Aw, market strategist at IG Markets Singapore.
Wednesday’s official Energy Information Agency data “will be closely monitored, although it is evident that the supply glut problem is expected to stay for a while longer”, Aw added.
Oil prices have tumbled from more than $100 a barrel in June last year as strong production from the United States and the Organization of the Petroleum Exporting Countries led to supplies outpacing demand.
