Oil steady in Asia on supply delays, bailout plan

[gopbuster]

By ALEX KENNEDY
Associated Press Writer

SINGAPORE (AP) - Oil prices were steady Thursday in Asia below $106 a barrel as investors weighed supply delays in the Gulf of Mexico against concerns that the U.S. credit crisis will slow global economic growth and hurt crude demand.

Light, sweet crude for November delivery was down 3 cents to $105.70 a barrel in electronic trading on the New York Mercantile Exchange midday in Singapore. The contract fell overnight 88 cents to settle at $105.73.

About 66 percent of oil production and 61 percent of natural gas output in the Gulf of Mexico remains shut-in after the passage of Hurricanes Gustav and Ike, according to the U.S. Minerals Management Service. The Gulf area is home to a quarter of U.S. oil production and 40 percent of refining capacity.

Mexico's state oil company said Tuesday it temporarily reduced oil production because U.S. refineries damaged by Ike have canceled shipment orders.

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