Friday, September 15 2006 15:08 Hrs (IST) - World Time -

Singapore: Oil prices were easier in Asian trade today (Sept 15, 2006) as supply concerns eased further following the latest US stockpile figures, dealers said.

At 10:50 am, New York's main contract, light sweet crude for October delivery, was down 16 cents at 63.06 dollars a barrel from 63.22 in late US trades yesterday.

Brent North Sea crude for October was flat at 62.24 dollars.

"The price has fallen but I'm suprised that it didn't fall more on Wednesday," said Tony Nunan, a Tokyo based manager for energy risk management with Mitsubishi Corporation.

"The United States Department of Energy statistics were bearish for distillates stocks, which were much higher than last year's (figures)," he said.

Dealers said a report showing a strong build-up in US natural gas inventories -- which are now 12 percent above normal levels for this time of year highlighted the overall easing of tensions in the energy market.

Natural gas futures fell below five dollars per million British thermal units (mBbtu), the lowest since 2004 and a 10 percent drop in a single day.

"It was a huge build. Natural gas prices are falling and dragging the rest of the market down . it looks like the psychology right now favors lower energy prices," said Mike Fitzpatrick at Fimat USA.

The market was also reacting to news that unions had called off their strike in Nigeria, Africa's biggest crude producer.