Oil stays above $73 in Asian trade

I / Singapore January 28, 2010, 10:11 IST

Oil prices rebounded in Asian trade today after steep declines overnight following the release of mixed energy stockpiles data from the United States.

New York's main futures contract, light sweet crude for delivery in March, climbed 11 cents to $73.78 a barrel. It dropped $1.04 to $73.67 in New York trade yesterday, its lowest close since December 22.

London's Brent North Sea crude for March delivery was up 14 cents to $72.38.

Analysts said the closely watched weekly stockpiles report for the United States, the world's biggest energy consumer, depressed the market.

"The large crude draw was positive but products continue to disappoint," said DnB Nor Markets analyst Torbjorn Kjus.

The US Department of Energy said yesterday that crude oil inventories plunged 3.9 million barrels in the week ended January 22, surprising most analysts who had expected an increase.

However, the crude stockpiles were still 5.1 per cent below their year-earlier level.

Distillates — including diesel and heating fuel — rose 4,00,000 barrels last week, instead of the much larger increase expected by the market.