SINGAPORE - Oil prices were down slightly in Asian trade Wednesday as the market awaited the release of key US economic growth data while positive sentiment on Saudi Arabia's supply capabilities turned more cautious, dealers said.
At 3:45 pm (0745 GMT), New York's main contract, light sweet crude for delivery in June, was down eight cents to 54.12 dollars a barrel from its close of 54.20 dollars on Tuesday in New York, where it finished 37 cents weaker.
Prices had dipped to 53.35 dollars in New York on Tuesday as market tensions eased following a meeting Monday between US President George Bush and Saudi Arabian Crown Prince Abdullah bin Abdul Aziz that focused on oil prices.
The two parties emerged with no short-term fix but urged markets to consider a Saudi plan to hike its oil output capacity to 12.5 million barrels per day (bpd) from 2010 and possibly up to 15 million bpd if needed.
However Mark Pevan, an analyst with Daiwa Securities in Melbourne, said traders were skeptical that Saudi Arabia could boost output further in the short-term if needed to.
"The outcome of the meeting appears to be that Saudi Arabia, although aware that the United States wants lower prices, doesn't have as much control as in the past," said Pevan.
He said the market was waiting for US first quarter gross domestic product (GDP) figures scheduled for release on Thursday.
The supply of gasoline, meanwhile, continues to be a key factor ahead of the start of the summer holiday driving season in the United States next month due to a lack of refining capacity there.
"There is a lack of refineries" in the United States to deal with heavy, sour crude, US-based Investec analyst Bruce Evers said.
"(Oil) demand has increased materially over the last 10 years and there has been no new refinery built in the United States," he noted.
04/27/2005 07:53 GMT