Crude down in Asia on US energy demand concerns

I / Singapore October 18, 2012, 9:45 IST

Oil fell in Asia today on demand concerns after US data showed a sharper-than-expected rise in crude inventories in the past week, analysts said.

New York's main contract, light sweet crude for delivery in November shed 10 cents to $92.02 a barrel and Brent North Sea crude for December delivery retreated two cents to $113.20.

A larger-than-expected gain in US crude stockpiles raised demand concerns among traders, said Sanjeev Gupta, who heads the Asia-Pacific oil and gas practice at Ernst & Young.

"Crude prices edged slightly lower, dragged down by oil demand concerns and the uncertain economy," he told AFP.

The US Department of Energy late Wednesday announced that crude supplies increased by 2.86 million barrels in the week ending October 12, a gain more than twice as large as analysts expected.

The United States is the world's largest oil consumer and stockpile gains, which reflect slowing demand, are closely watched by the market.

Despite the slip, crude prices were being supported by US data showing housing starts and building permits jumping to their highest level in more than four years in September.

Traders were also eyeing a two-day European Union summit later Thursday -- the first of three being held before Christmas -- for market leads.