Traders were separated on whether the commodity has bottomed out after a plunge of almost 60% since June[/b]
Oil costs cut down in Asia today following a three-day rally as traders were separated on whether the commodity has bottomed out after a plunge of almost 60% since June, analysts told.
US benchmark West Texas Intermediate (WTI) for March delivery cut down 94 cents to $52.11 whereas Brent crude for March eased 47 cents to $57.44 in mid-morning deal.
WTI raised $3.48 to $53.05 yesterday, its maximum close since December 31, whereas Brent jumped $3.16 to $57.91, its top reading since December 30, as traders cheered signs that the oil industry is tapering exploration actions to cap a supply glut.
Ken Hasegawa, an energy operating administrator at New edge Group in Tokyo, told the crude marketplace was “enormously volatile” after the three-day rally that began Friday saw costs surge almost 20%.
“It has become gradually more complicated to distinguish the direction of the costs of crude oil, but the fundamentals remain unchanged,” Hasegawa said AFP.
He added that costs could “vary by rising up to $10 and lessening up to $10? in the immediate term.
Deep cuts in capital expenditure by foremost oil corporations; including new pronouncements yesterday by BP and BG Group, had recommended there would be tighter supplies in the future.
Previous week, The Baker Hughes North America rig count details for the week to January 30 showed a fall of 128 rigs to 1,937. That contrasted with 2,393 a year ago.
Some analysts though remain uncertain that the current oil cost rebound will be continued as supplies still outweigh demand in theshort term.
The oil marketplace has lost more than half its price as June, while crude price above $100 a barrel, mainly because of a surge in international reserves boosted by robust US shale oil production.
Oil costs cut down in Asia today following a three-day rally as traders were separated on whether the commodity has bottomed out after a plunge of almost 60% since June, analysts told.
US benchmark West Texas Intermediate (WTI) for March delivery cut down 94 cents to $52.11 whereas Brent crude for March eased 47 cents to $57.44 in mid-morning deal.
WTI raised $3.48 to $53.05 yesterday, its maximum close since December 31, whereas Brent jumped $3.16 to $57.91, its top reading since December 30, as traders cheered signs that the oil industry is tapering exploration actions to cap a supply glut.
Ken Hasegawa, an energy operating administrator at New edge Group in Tokyo, told the crude marketplace was “enormously volatile” after the three-day rally that began Friday saw costs surge almost 20%.
“It has become gradually more complicated to distinguish the direction of the costs of crude oil, but the fundamentals remain unchanged,” Hasegawa said AFP.
He added that costs could “vary by rising up to $10 and lessening up to $10? in the immediate term.
Deep cuts in capital expenditure by foremost oil corporations; including new pronouncements yesterday by BP and BG Group, had recommended there would be tighter supplies in the future.
Previous week, The Baker Hughes North America rig count details for the week to January 30 showed a fall of 128 rigs to 1,937. That contrasted with 2,393 a year ago.
Some analysts though remain uncertain that the current oil cost rebound will be continued as supplies still outweigh demand in theshort term.
The oil marketplace has lost more than half its price as June, while crude price above $100 a barrel, mainly because of a surge in international reserves boosted by robust US shale oil production.