Oil mixed on worries over China, Europe sovereign debt

Thursday, 18 November 2010 00:42 - - {{hitsCtrl.values.hits}}

SINGAPORE, (AFP) - Oil was mixed in Asian trade Wednesday amid investor concerns that China might again tighten monetary policy and worries over Europe’s debt woes, analysts said.

New York’s main contract, light sweet crude for December delivery, rose slightly by three cents to 82.37 dollars a barrel.

Brent North Sea crude for January delivery was off 13 cents to 84.60 dollars.

Analysts from the Commonwealth Bank of Australia said there were “growing fears that the European debt crisis and tightening policy measures in China will reduce oil demand”.

Speculation is building over a possible rescue for Ireland running up to 123 billion dollars (90 billion euros) after Greece was bailed out by the European Union and the International Monetary Fund with 110 billion euros in May.

“Several factors are keeping a lid on oil prices at the moment,” said Westhouse Securities analyst David Hart.

“Among these, rising inflation expectations in Asia are increasing concerns that growth in the region will be reined back which would, in turn, moderate increases in crude demand.”Data released last week showed that Chinese consumer prices rose at their fastest pace in more than two years in October, reviving worries that the authorities might hike interest rates again.