AP: Oil falls to near $78 amid US crude supply jump
SINGAPORE — Oil prices fell to near $78 a barrel Wednesday in Asia after U.S. crude supplies unexpectedly rose, suggesting demand in the world's largest economy remains weak.
Benchmark crude for January delivery was down 30 cents to $78.07 at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. The contract rose $1.09 to settle at $78.37 on Monday.
U.S. crude inventories unexpectedly fell last week, the American Petroleum Institute said late Tuesday. Crude stocks rose 2.9 million barrels while analysts had expected a drop of 1.3 million barrels, according to a survey by Platts, the energy information arm of McGraw-Hill Cos.
The Energy Information Administration plans to announce its inventory report later Wednesday.
Oil prices broke below $76 a barrel late last week after conglomerate Dubai World said it would delay interest payments on $60 billion of debt. But prices quickly recovered this week as investors were encouraged by signs of improving crude demand in Asia.
Crude has traded between $75 a barrel and $82 for more than a month.
"Prices should continue to be rangebound," Societe Generale said in a report. "However, there is a solid floor."
In other Nymex trading, natural gas shed 15.9 cents to $4.689 per 1,000 cubic feet. Heating oil rose 1.57 cents to $2.0636 and gasoline gained 1.33 cents to settle at $2.0248.
In London, Brent crude for January delivery fell 18 cents to $79.17 on the ICE Futures exchange.
