Oil prices weaker in Asian trade ahead of US energy report

SINGAPORE (AFP) - Oil prices eased in Asian trade Wednesday on profit-taking after rising close to all-time highs on expectations of declines in US energy reserves, dealers said.

At 10:40 am (0240 GMT), New York's main contract, light sweet crude for September delivery, was down 32 cents to 77.89 US dollars a barrel from 78.21 dollars in late US trades Tuesday.

Oil had risen as high as 78.24 dollars, just shy of its all-time record of 78.40 dollars hit July 13, 2006, as players anticipated further tightness in supplies and ahead of the weekly US stockpiles report due later Wednesday.

Brent North Sea crude for September dropped 37 cents to 76.68 dollars.

"People are still looking at the supply-demand picture," said Steve Rowles, an analyst with CFC Seymour in Hong Kong.

The US Department of Energy is due to release later Wednesday its weekly energy stockpiles report and the market is expected a fall in reserves.

The consensus forecast is for a decline of 1.13 million barrels of crude, following a drop of 1.1 million barrels announced last week.

"If we see another draw in crude stocks as expected, and especially if there is a drop in stocks at (key US storage terminal) Cushing, it will push New York crude higher," said Sucden analyst Michael Davies.