Oil prices mixed in Asia

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Oil prices mixed in Asia

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Oil prices remained broadly underpinned by the simmering Iran tensions.

02 February,2012 10:33 am

Oil prices were mixed in Asia Thursday as positive global manufacturing data and Iranian tensions were weighed by the unresolved talks on Greeces debt and higher US inventories, analysts said.New Yorks main contract, West Texas Intermediate (WTI) for delivery in March, dipped 19 cents to $97.42 per barrel in the afternoon while Brent North Sea crude for March delivery added 21 cents to $111.77.Brent crude oil prices moved slightly higher on European debt-deal hopes and encouraging Chinese economic data, said Sanjeev Gupta, who heads the Asia-Pacific oil and gas practice at Ernst and Young in Singapore.Crude prices remained broadly underpinned by the simmering Iran tensions, he told AFP.Phillip Futures also said the rise in Brent crude was due to upbeat Chinese manufacturing data and concerns about the standoff between Iran and the West in the Middle East.China said Wednesday its official purchasing managers index (PMI) rose to 50.5 in January from 50.3 in December, expanding for the second straight month despite weaker demand for exports in the worlds second-largest economy.Traders were also inspired by similar pickups in the manufacturing sectors of the US and the eurozone.US lawmakers on Tuesday also unveiled proposals for fresh sanctions on Tehran as talks between Iranian officials and a delegation from the International Atomic Energy Agency wrapped up with no sign of any breakthrough over the Arab nations nuclear programme.However, Phillip Futures said data showing a rise in US crude inventories last week, an indication of weaker demand, weighed down on WTI prices.Gupta said sentiment was also hit by disappointing housing statistics and traders were awaiting the weekly inventory statistics for some signs of hope in an underwhelming winter demand season.Prices for US homes fell again in November, a key index showed Tuesday, failing to respond to record low mortgage loan rates and in Europe while an agreement on stricter controls to maintain balanced budgets across the region was welcomed, continued wrangling over a Greek debt writedown by its creditors means the debt crisis is still in the balance.