OIL FUTURES: Crude Mixed As U.S.-Led Air Strikes Ease In Libya

SINGAPORE (Dow Jones) - Crude futures in Asia were mixed Wednesday as the pace of air strikes led by the United States began to ease in Libya, with traders turning their attention to data on U.S. petroleum inventories and political instability in other parts of North Africa and Middle East.
"The situation in Libya, although far from resolved, there is a price for the most part with the market discounting a virtual loss of exports from the country for a prolonged period of at least six months," said Jim Ritterbusch, president of Ritterbusch & Associates, in a note to subscribers.
"Despite military holders may have price volatility high pitched for a while, the upward momentum factor outside Libya appears to have been dropped to the point of dramatic surprises are more likely to be bearish," he said.
In the New York Mercantile Exchange, the future of light, sweet crude for May delivery traded at $ 104.94 a barrel by 0704 GMT, down from $ 0. 03 on the Globex electronic session. May Brent crude on London's ICE Futures exchange rose $ 0.20 to $ 115.90 a barrel.
The pace of U.S. air strikes in Libya should slow in the coming days, U.S. Defense Secretary Robert Gates said on Tuesday. There were no reports of new strikes on Tuesday, and in some cases, the rate of attack has been relieved.
Elsewhere in the region, although countries like Bahrain and Yemen produce relatively small volumes of oil, the tensions could spread to other oil producing countries or disrupt shipping lanes, said Ken Hasegawa, manager of sales of products in Newedge Japan in Tokyo.
"Oil prices continue an upward trend and could reach $ 120 a barrel," said Hasegawa.
However, the Organization of Petroleum Exporting Countries is likely to see this level as a roof, as any movement upward could hurt global economic recovery and demand for oil, he said.
Meanwhile, the U.S. Crude inventories are expected to increase by 1.7 million barrels, according to the average estimate of 12 analysts surveyed by Dow Jones Newswires. Gasoline inventories would fall by 2 million barrels, while inventories of distillates, which include heating oil and diesel, are expected to fall by 1.4 million barrels.
Nymex April reformulated gasoline blendstock - the contract reference gas - rose 90 points to $ 3.0135 a gallon, while April heating oil traded at $ 3.0662, 100 points behind.
April ICE gasoil changed hands at $ 983.75 a tonne, down $ 3.75 from Tuesday's settlement.