Oil prices lower in Asian trade

I / Singapore February 10, 2010, 10:41 IST

Oil prices fell in Asian trade today after a sharp rise overnight, with investors remaining cautious over weak energy demand.

New York's main futures contract, light sweet crude for delivery in March, tumbled 48 cents to $73.27 a barrel. The contract soared $1.86 in New York trade yesterday.

Brent North Sea crude delivery for March was down 46 cents to $71.67, after climbing a hefty $2.02.

"It's becoming increasingly clear that demand remains fairly soft even with the cold weather in the northern hemisphere," said Jason Feer, Asia-Pacific vice president of energy consultancy Argus Media.

"There is still a big global overhang in middle distillate stocks so the demand and supply picture at this point is fairly bearish," he added.

Fierce snowstorms have hit the northeast United States, creating treacherous travel conditions, shutting Washington area airports and leading several states to declare emergencies.

The US Department of Energy said after the market close that its weekly petroleum inventories report, usually published on Wednesday, had been delayed by the inclement weather and will be released at 1600 GMT Friday.

The report is closely watched by the market because it reflects the extent of demand in the world's biggest economy and largest energy consuming nation.