SINGAPORE: Oil prices were flat in Asia yesterday as a stronger dollar offset rising demand for heating fuel due to cold weather in the northern hemisphere, analysts said.New York’s main futures contract, light sweet crude for delivery in February, was down two cents to US$81.75 a barrel in the afternoon.
Brent North Sea crude for February delivery was steady at US$80.59.
“Positive market sentiment from the continued cold weather across the US and Europe was partly offset by a firmer US dollar,” said the Commonwealth Bank of Australia in a report.
A stronger US unit makes dollar-denominated oil more expensive to holders of other currencies, dampening demand and leading to lower prices.
The yen slipped against the dollar in Asia on Wednesday following reports that Japan’s finance minister may quit for health reasons, while the euro was pressured by worries about Europe’s financial woes.
The dollar rose to 92.09 yen in Tokyo afternoon trade, from 91.70 yen in New York late on Tuesday.
The euro dropped to US$1.4345 after 1.4367 but rose to 132.18 yen against 131.74.
Cold weather in the United States and Europe had been driving prices higher because of strong demand for heating fuel.
But independent oil analyst Ellis Eckland said the US cold snap is easing.
The cold weather is “definitively adding to oil demand, but the American weather looks like it is going to ease up, so it’s slightly bearish for oil,” he said. — AFP