Oil extends losses in Asian trade

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SINGAPORE: World oil prices extended their decline in Asian trade Thursday on data showing weak demand in the United States and persistent concerns over eurozone debt crisis.

Official data showed energy stockpiles in the United States increased more than expected last week, indicating softer demand in the world's biggest oil consuming nation.

New York's main contract, West Texas Intermediate (WTI) for delivery in November, was down 83 cents to $80.38 in morning Asian trade.

Brent North Sea crude for November delivery shed 91 cents to $102.90.

"Weak global outlook and underperforming equity markets weighed (on the market)," financial group CIMB said in a commentary.

"US crude oil and gasoline inventories rose last week, implying growing weakness in fundamental demand," it added.

The US Department of Energy said Wednesday that crude oil stockpiles rose by 1.9 million barrels last week, more than the market had expected.

"The crude oil build-up was fairly large, and gasoline as well," said John Kilduff of Again Capital.

"But more importantly, the four-week average demand numbers were down significantly and I think it speaks of the state of the economy right now and the diminished prospects for it," he added.

Prices had surged by more than $4 a barrel in New York on Tuesday, mirroring huge gains in the global equity markets, sparked by hopes European governments would contain the eurozone debt crisis.

Global creditors announced Wednesday the return of auditors to Greece in a bid to break an impasse over billions of euros in blocked bailout loans Athens needs to avoid default on its massive debts.

But efforts to resolve the wider debt crisis, which the US fears will trigger another worldwide downturn, are embroiled in national feuding with German Chancellor Angela Merkel, suggesting a second Greek bailout may need to be renegotiated. (AFP)