SINGAPORE, Feb 5: Crude oil futures edged up in lacklustre trading on Friday as Asian liquidity faded ahead of the Lunar New Year holiday across large parts of the region.
International benchmark Brent crude futures were trading at $34.67 per barrel at 0149 GMT, up 21 cents from their last settlement. U.S. crude futures were up 17 cents at $31.89 a barrel. Traders said liquidity was low due to the Lunar New Year holiday which will last for most of next week. Oil prices have been extremely volatile since the start of the year, and in particular this week, as a string of bullish indicators like a slump in the dollar and potential talks on output cuts clashed with bearish reports of record U.S. crude inventories, higher output and a slowing global economy. Yet the overall market outlook remains bearish as long as major producers don’t reach an agreement on output, with China’s economic slowdown now showing signs of spreading across the world. “In spite of the record crude oil production … demand for shipping is disappointing,” said commodities brokerage Marex Spectron. “The macroeconomic environment is bearish. Global industrial production, manufacturing and automotive demand indices all point towards weakening demand.” (AGENCIES)
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