Updated on
Summary
Oil prices extended declines in Asian trade Tuesday as ongoing concerns over soft demand in the United States, the world's largest energy consumer, weighed on the market, analysts said. New York's main contract, light sweet crude for delivery in May fell nine cents to $84.25 a barrel. Brent North Sea crude for May dipped 10 cents to $84.67 a barrel. Sentiment was hampered by expectations of bearish demand ahead of a weekly government crude supplies report from the US Department of Energy on Wednesday, analysts said. The US government's weekly oil stockpiles report last Wednesday showed an increase in crude oil reserves for the 10th week in a row. Demand worries pared gains made in trading Monday when the New York contract briefly rallied above $85 on a weaker dollar, making dollar-priced crude cheaper for buyers using stronger currencies, and improved Chinese demand. Sentiment had earlier been boosted by a report on Saturday showing oil imports grew in China, the world's second-largest energy consumer, by 29 percent in March compared with a year earlier. China imported 4.98 million barrels a day, according to preliminary data from the General Administration of Customs, while net imports were 20.8 million tons. Oil prices have fallen after peaking above $87 last week for the first time since October 2008 on signs of an economic upswing that was hoped would steer a pick-up in oil demand.
