Oil eases despite demand increase
SINGAPORE (Commodity Online) : Global oil prices eased in Asian trade Friday despite reports of bigger-than-expected decline in US gasoline inventories and stronger demand.
Light sweet crude for July delivery was seen trading at $74.32 a barrel at 11.00 a.m Singapore time while Brent crude was at $75.25 a barrel in London.
Analysts said the black gold dropped from its highest closing price in three weeks as investors remained skeptical that rising U.S. demand and falling stockpiles would prevail over concerns Europe's debt crisis would worsen.
U.S. nonfarm payrolls report, expected later today might show a fifth straight month of gains in May, as the next economic indicator to drive oil prices, they added.
On Thursday, market reaction was mostly bullish after a mixed US Department of Energy report on oil inventories.
New York's main contract, light sweet crude for delivery in July, vaulted $1.75 from Wednesday to close at $74.61 a barrel.
In London, Brent North Sea crude for July gained $1.66 to settle at $75.41 a barrel.
US gasoline inventories plunged more than the market expected, by 2.6 million barrels to 219 million barrels, in the week ending May 28, according to the DoE data.