Oil prices edge up in Asia after sharp plunge

Singapore, Sep 1 (AFP) Oil prices edged up slightly todayafter being hammered the day before by data showing a sharprise in US stockpiles, while analysts warned a pick-up in thedollar would add further downward pressure. Both main contracts plunged yesterday after the US EnergyDepartment said commercial inventories in the world’s top oilconsumer edged up last week and were now 16 percent higherthan the same period last year. The figures, which came despite a dip in production,poured fresh fuel on fears about a global supply glut that hasdogged the crude market for years. By the end of yesterday US benchmark West TexasIntermediate sank 3.6 per cent and Brent dived 2.7 per cent. At around 0720 GMT on Thursday, WTI for delivery inOctober was up 35 cents, or 0.76 per cent, at USD 45.05 andBrent crude for November, a new contract, added 31 cents, or0.66 per cent, to USD 47.20. "The small rebound was due to intra-day traders… takingback short-term positions," said Jeffrey Halley, a seniormarket analyst at OANDA, told AFP. "I expect any rally to be short lived and for WTI andBrent to test and possibly break supports at USD 44.00 and USD46.50." Prices soared last month as OPEC and Russia agreed tohold talks to address the supply crisis. But those gains have been slowly wiped away by a strongdollar — making oil more expensive for holders of other units– and uncertainty over OPEC member and key producer Iran’sparticipation in the talks. Analysts remain doubtful oil producers will agree to anylimits at the meeting in Algeria this month. Traders are keeping a close eye on the release Friday ofUS jobs data, which could spur the Federal Reserve to hikeinterest rates and in turn send the dollar higher, denting oildemand further. (AFP)KJ