Beijing – Crude edged higher in Asian trade Thursday on supply concerns following escalating violence in oil-producer South Sudan, but gains were capped as dealers sat on the sidelines awaiting fresh leads after the festive season. New York’s main contract, West Texas Intermediate for February delivery, was up 13 cents at $99.35 in afternoon trade while Brent North Sea crude for February gained 17 cents to $112.07. Sanjeev Gupta, the head of the Asia-Pacific oil and gas practice at consultancy firm EY, said oil prices were increasing because of “fears of disruptions in supply from South Sudan”. Violence in South Sudan, a fledgling oil producer, escalated yesterday as its army battled rebel forces in a key oil-producing state, while the United Nations moved to double its peacekeeping force to stave off civil war. The more than a week of violence is pitting troops loyal to President Salva Kiir against Riek Machar, a former vice-president, who was sacked in July. Oil production, which accounts for more than 95 per cent of South Sudan’s economy, has been dented by the violence, with oil workers evacuated last week. The escalating violence has added to concerns about a disruption in global supply, following the continued curtailment of output from OPEC member Libya due to months-long blockade of crucial terminals in the eastern part of the country. Investors are also awaiting the weekly US oil inventories report to be released Friday for clues about US demand.
