By Eric Yep
Crude-oil futures moved in a narrow price range in Asian trade Friday as some market participants think oil may be oversold.
On the New York Mercantile Exchange light, sweet crude futures for delivery in October traded at $93.82 a barrel at 0512 GMT, down $0.14 in the Globex electronic session. October Brent crude on London's ICE Futures exchange fell $0.14 to $102.49 a barrel.
Oil had gained overnight and both Nymex WTI and Brent crude have settled higher for two consecutive trading sessions.
"There's not necessarily specific bullish news to argue that the market has become tighter but there has been at least some talk that OPEC might trim output to provide support if the market were to extendthe downtrend," Citi Futures analyst Tim Evans said.
But the Organization of the Petroleum Exporting Countries may not need to trim output despite higher Libyan exports as oil demand will grow for the rest of this year, he said.
Meanwhile, China's actual oil demand continued to drop in July and was the weakest since January. Weak demand is across all petroleum products including diesel and gasoline, Citi Research analyst Ivan Szpakowski said.
Asian fuel demand in important importers of crude, gasoline and diesel including Indonesia, India and China has fallen well below expectations this summer, executives said at a Platts forum in Singapore.
Wider financial markets are waiting for a weekend meeting of the world's main central bankers at Jackson Hole--especially U.S. Federal Reserve Chairwoman Janet Yellen's comments on the its monetary policy.
Nymex reformulated gasoline blendstock for September--the benchmark gasoline contract--rose 42 points to $2.7517 a gallon while September heating oil traded at $2.8346--29 points lower.
ICE gasoil for September changed hands at $861.00 a metric ton--up $1.75 from Thursday's settlement.
Write to Eric Yep at email@example.com
(END) Dow Jones Newswires
August 22, 2014 03:00 ET (07:00 GMT)
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