Crude prices mixed in Asia

SINGAPORE: Oil prices were mixed in Asian trade Wednesday as forecasts of a spike in US crude stockpiles were offset by geopolitical concerns in the Red Sea, analysts said.

New York's main contract, light sweet crude for delivery in October, fell 36 cents to $88.54 per barrel in the afternoon.

Brent North Sea crude for October delivery gained a cent to $114.03.

Oil markets were being depressed by the American Petroleum Institute's (API) prediction Tuesday of a jump in crude stockpiles of the world's largest oil consumer, said Nick Trevethan, senior commodities strategist of ANZ Research.

The API forecast Tuesday a that crude stockpiles had jumped 5.1 million barrels for the week ending August 26.

"The API report ... will obviously put a little bit of pressure on the market," he told AFP.

However, Trevethan said geopolitical fears in the oil-producing Arab region sparked by Israel and Iran's naval posturing in the Red Sea was supporting prices.

Iran on Tuesday said it had dispatched a submarine and a warship to the region, saying it would "display the capabilities of the Islamic Republic of Iran".

The move prompted Israel to announce it was deploying two missile boats to the area as well, raising tensions in an area that is already volatile due to several popular uprisings.

Copyright AFP (Agence France-Presse), 2011