Oil traded higher in Asia yesterday but was below record peaks of more than US$96 as investors took profits and global stock markets weakened on concerns over the US economy, dealers said.
New York's main futures contract, light sweet crude for delivery in December, was trading at US$93.58 a barrel, up US$0.09 from its close of US$93.49 in US trade on Thursday.
Brent North Sea crude for December traded at US$90.04, up US$0.32.
The Commonwealth Bank of Australia said in a market note that the fallback in oil prices was influenced by profit-taking and precautionary selling as international equity markets weakened.
Asian stocks suffered heavy losses yesterday after initial euphoria on Wall Street over the US interest rate cut faded quickly as fresh credit jitters rattled global markets.
SPOOKED
Indices around the region fell after declines in New York and Europe on renewed worries about the fallout from the mortgage and credit woes that wreaked havoc on world markets in August.
Global stock markets were also spooked after oil prices rocketed beyond US$96 a barrel on Thursday.
"It's before the weekend and people are waiting for fresh news," said Tetsu Emori, a fund manager at Astmax in Tokyo, after oil prices pulled back.
VOLATILE
However, the market is still watching whether prices would shoot up to US$100 per barrel.
"People are looking at a higher level, prices are getting more volatile," Emori said.
While he said there could be some resistance against US$100 oil, there were just too many factors that could push prices higher.
"The question is how long oil will stay at current levels?" he said. "There are many, many factors -- investment money, psychological factors, supplies, geopolitics."
A sharp fall in US crude inventories last week by 3.9 million barrels against forecasts for a gain of 400,000 barrels highlighted supply concerns and helped oil prices to spiral.
"At this time of year, we should certainly be substantially building stocks, so to get draws on crude is never good for the refining industry and it shows that the market is decidedly nervous," said Robert Laughlin, a broker at Man Financial.
Oil prices were also boosted by the Federal Reserve's move on Wednesday to reduce US interest rates by a quarter-point to 4.50 percent. The cut weakened the US dollar against other currencies.
A weak US unit encourages oil demand because it makes dollar-priced commodities cheaper for buyers using stronger currencies.
Quanta Computer Inc (廣達) chairman Barry Lam (林百里) is expected to share his views about the artificial intelligence (AI) industry’s prospects during his speech at the company’s 37th anniversary ceremony, as AI servers have become a new growth engine for the equipment manufacturing service provider. Lam’s speech is much anticipated, as Quanta has risen as one of the world’s major AI server suppliers. The company reported a 30 percent year-on-year growth in consolidated revenue to NT$1.41 trillion (US$43.35 billion) last year, thanks to fast-growing demand for servers, especially those with AI capabilities. The company told investors in November last year that
Intel Corp has named Tasha Chuang (莊蓓瑜) to lead Intel Taiwan in a bid to reinforce relations between the company and its Taiwanese partners. The appointment of Chuang as general manager for Intel Taiwan takes effect on Thursday, the firm said in a statement yesterday. Chuang is to lead her team in Taiwan to pursue product development and sales growth in an effort to reinforce the company’s ties with its partners and clients, Intel said. Chuang was previously in charge of managing Intel’s ties with leading Taiwanese PC brand Asustek Computer Inc (華碩), which included helping Asustek strengthen its global businesses, the company
Taiwanese suppliers to Taiwan Semiconductor Manufacturing Co. (TSMC, 台積電) are expected to follow the contract chipmaker’s step to invest in the US, but their relocation may be seven to eight years away, Minister of Economic Affairs J.W. Kuo (郭智輝) said yesterday. When asked by opposition Chinese Nationalist Party (KMT) Legislator Niu Hsu-ting (牛煦庭) in the legislature about growing concerns that TSMC’s huge investments in the US will prompt its suppliers to follow suit, Kuo said based on the chipmaker’s current limited production volume, it is unlikely to lead its supply chain to go there for now. “Unless TSMC completes its planned six
TikTok abounds with viral videos accusing prestigious brands of secretly manufacturing luxury goods in China so they can be sold at cut prices. However, while these “revelations” are spurious, behind them lurks a well-oiled machine for selling counterfeit goods that is making the most of the confusion surrounding trade tariffs. Chinese content creators who portray themselves as workers or subcontractors in the luxury goods business claim that Beijing has lifted confidentiality clauses on local subcontractors as a way to respond to the huge hike in customs duties imposed on China by US President Donald Trump. They say this Chinese decision, of which Agence
RSS