Oil mixed in Asian trade

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Published May 19, 2015

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Tokyo - Oil prices were mixed in Asia on Tuesday as a global glut and soft demand overshadowed the impact of geopolitical tensions in the crude-rich Middle East, analysts said.

The US benchmark, West Texas Intermediate (WTI) for June delivery, gained six cents to $59.49 while Brent crude for July eased 14 cents to $66.13 in late-morning trade.

Bernard Aw, market strategist at IG Markets Singapore, said the fundamentals of “global oversupply with weak demand” continue to put a cap on prices despite geopolitical unrest raising concerns about a disruption in the Middle East.

He said the crude market is already “used to” unrest in the region, where Islamic State group fighters on Sunday captured the key Iraqi city of Ramadi.

Yemen is also engulfed in violence that analysts fear could escalate and draw in neighbouring Saudi Arabia and Iran, which are backing the warring factions.

AFP

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