Oil prices fell in Asian trade Wednesday but the declines were limited due to buoyant gains on Wall Street and a larger-than-expected fall in US crude inventories, analysts said
New York's main contract, light sweet crude for delivery in November, fell four cents to $88.30 per barrel.
Brent North Sea crude for December delivery fell six cents to $111.09.
|A woman walks past a display board showing the Hang Seng stock market index in Hong Kong on October 18, 2011|
The market was supported "as Wall Street rose on bank earnings that overshadowed slower Chinese growth and Europe’s debt troubles," Phillip Futures said in a report.
US financial giants Bank of America, JPMorgan, Wells Fargo and Citigroup all saw their shares surge between five and 10 percent Tuesday after reporting positive earnings figures, pushing up key US bourses.
Wall Street's cheer was helped by British newspaper The Guardian reporting that France and Germany, the eurozone's biggest economies, have agreed to boost the region's rescue fund to two trillion euros ($2.7 trillion) from 440 billion euros.
Meanwhile, forecasts of a larger-than-expected decline in US crude stockpiles by the American Petroleum Institute in a report released late Tuesday was also cheering crude markets, Phillip Futures said in its report.
"Crude stocks fell 3.1 million barrels. This was contrary to the 1.8 million barrels increase anticipated by analysts," the report said.
A decline in inventories indicates stronger energy demand.