LONDON: Oil prices declined in Asia as dealers got profits from steep gains. US benchmark West Texas Intermediate for March delivery fell $1.35 to $46.89 while Brent crude for March was down $1.41 at $51.58.
Analysts said dealers were taking profits after WTI rebounded from six-year lows to rocket $3.71, while Brent surged $3.46.
Analysts said the price changes were “speculative in nature”. They said they believe that prices are consolidating as the market attempts to correct supply and demand.
Prices were also facing downward pressure on concerns strikes at US refineries could curtail crude processing in the world’s top oil consumer.
The United Steelworkers union, which represents employees at more than 200 US refineries, terminals, pipelines and chemical plants, stopped work on Sunday at nine sites after failing to agree on a labour contract, Bloomberg News reported.
The refineries on strike can produce 1.82 million barrels a day of fuel, about 10% of total US capacity.
A refinery shutdown in the US would add to the huge global supply glut as raw crude is not processed for consumption.
The oil market has lost more than half its value since June last year when the commodity was sitting at more than $100 a barrel, largely due to a surge in global reserves boosted by robust US shale oil production.
The problem was exacerbated in November after the OPEC oil cartel insisted that it would maintain output levels despite plunging prices. The 12-nation group pumps about 30%of global crude.
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