Current Oil Prices Mixed in Asian Trading

The current oil prices in Asian trading are mixed as investors came back from a holiday weekend in the U.S. and a chokepoint at a main pipeline in the United States eased, said analysts.

On the NYMEX, the U.S. benchmark crude for March delivery increased 6 cents to $96.72 per barrel. Meanwhile, Brent crude for April delivery shed 14 cents to a crude price per barrel of $117.38 on London’s ICE Futures Exchange.

In a report of Singapore’s IG Markets, the price of U.S. crude increased due to news of rising crude volume passing through the Seaway pipeline, the main pipeline serving refineries at the Gulf Coast.

The pipeline has been having distribution challenges recently; however, its operators plan to deliver 295,000 barrels daily between the latter parts of February and the closing parts of May, according to the reports of the media.

Seaway is considered an important component in solving the oil glut at the U.S. hub in Cushing, Oklahoma.

The capacity of the pipeline was recently increased to 400,000 barrels daily from 150,000 barrels daily. However, the operator has faced technical issues that restricting its volume. According to other analysts, stronger stocks in the U.S. after trading came back from the long weekend holiday helped raise the market sentiment.

Europe’s weak economic data keeps weighing it down in spite of reports that Germany’s investor sentiment has increased to levels last witnessed prior to the beginning of the three year old debt crisis in the eurozone.

A recession in the eurozone’s 17 countries sharply deepened in quarter four last year, with the economy contracting 0.6 percent in the last quarter of the year, compared to a decline of 0.1 percent versus the prior quarter.

By: Chris Termeer

Chris Termeer

Chris Termeer is an oil and gas consultant, industry commentator and analyst. His book, Fundamentals of Investing in Oil and Gas provides a comprehensive overview of all aspects of the oil and gas industry, including exploration, drilling, production, storage, transportation and refining, to name but a few.

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