Monday June 22, 2009
SINGAPORE: Oil prices stayed below 70 dollars a barrel in Asian trade Monday as traders took profits following a recent surge, analysts said.
New York's main futures contract, light sweet crude for delivery in July, was down 39 cents to 69.16 dollars a barrel. The contract expires later Monday.
Brent North Sea crude for August delivery eased 24 cents to 68.95 dollars.
Victor Shum, an analyst with energy consultancy Purvin and Getz in Singapore, said New York crude came under pressure as traders locked in profits on the final day of trade, while a stabilising US dollar also supported lower prices.
Oil prices were due for a correction after breaching the 72-dollar mark last week amid concerns they were rising far ahead of a recovery in the ailing global economy, analysts said.
"A price correction in oil is long overdue and the US dollar stabilisation would continue to put pressure on oil," said Shum.
A stronger US currency makes dollar-priced oil more expensive for buyers holding weaker currencies, which in turn tends to dampen demand and pull the market lower.
Shum also said concerns over the pace and strength of a global economic recovery helped crimp the oil market.
"The rally in the global equities market is possibly also stalling a bit, and if the rally in equities markets is running out of steam, it will also put pressure on oil," he added.
Oil prices had plunged from record peaks of more than 147 dollars a barrel in July 2008 to around 32 dollars in December as the economic slowdown crushed demand for energy, but they have slowly clawed their way back.
(AFP)
SINGAPORE: Oil prices stayed below 70 dollars a barrel in Asian trade Monday as traders took profits following a recent surge, analysts said.
New York's main futures contract, light sweet crude for delivery in July, was down 39 cents to 69.16 dollars a barrel. The contract expires later Monday.
Brent North Sea crude for August delivery eased 24 cents to 68.95 dollars.
Victor Shum, an analyst with energy consultancy Purvin and Getz in Singapore, said New York crude came under pressure as traders locked in profits on the final day of trade, while a stabilising US dollar also supported lower prices.
Oil prices were due for a correction after breaching the 72-dollar mark last week amid concerns they were rising far ahead of a recovery in the ailing global economy, analysts said.
"A price correction in oil is long overdue and the US dollar stabilisation would continue to put pressure on oil," said Shum.
A stronger US currency makes dollar-priced oil more expensive for buyers holding weaker currencies, which in turn tends to dampen demand and pull the market lower.
Shum also said concerns over the pace and strength of a global economic recovery helped crimp the oil market.
"The rally in the global equities market is possibly also stalling a bit, and if the rally in equities markets is running out of steam, it will also put pressure on oil," he added.
Oil prices had plunged from record peaks of more than 147 dollars a barrel in July 2008 to around 32 dollars in December as the economic slowdown crushed demand for energy, but they have slowly clawed their way back.
(AFP)
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