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| Oil rebounds in Asian trade but stays below $80 |
| AFP/PTI / Singapore Jan 14, 2010, 10:43 IST |
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Oil prices rebounded in Asian trade today but remained below $80 a barrel following an overnight plunge on signs of weakening energy demand in the United States.
New York's main futures contract, light sweet crude for delivery in February, rose 22 cents to $79.87 per barrel.
The contract sank $1.14 in New York on yesterday to close at $79.65 per barrel, after plumbing an intraday low of $78.37.
London's Brent North Sea crude for February gained 17 cents to $78.48 per barrel.
Analysts said the sharp fall in oil prices yesterday was triggered by the US Department of Energy (DoE) report that showed crude oil reserves surged by 3.7 million barrels in the week ending January 8.
That was far more than most analyst expectations of a gain of 1.0 million barrels.
Distillates -- including heating fuel and diesel -- rose by 1.4 million barrels, the DoE said, confounding forecasts of a 1.8-million-barrel drop.
Distillates are in the market's focus amid an ongoing cold snap in the United States. Forecasters have predicted milder weather for the weeks ahead.
The United States is the world's biggest energy consuming nation and its usage can influence oil prices.
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