Oil resumed its sell-off in Asian trade today after slight gains overnight, with regional stocks mostly lower and sentiment weighed down by weak US demand and debt woes in the eurozone.
New York's main futures contract, light sweet crude for delivery in March, was down 24 cents to $71.65 a barrel, while Brent North Sea crude for March dipped 20 cents to $69.91 a barrel.
Oil recovered slightly yesterday after a massive sell-down last week triggered by weak US jobs data and debt problems in Europe, but analysts said the rebound was unlikely to be sustained.
"Key Asian stock markets are lower and the outlook in Europe remains muddled by investor concerns over the ability of Greece, Spain and Portugal to handle their debts," said Victor Shum, an analyst with global energy consultancy Purvin and Gertz in Singapore.
"These concerns on top of the ongoing weak demand in the United States will keep pressure on oil prices."
Bargain hunting was not enough to stem the price fall, Shum added.
"The question really is, will enough investors view this correction in oil pricing as a buy opportunity? If enough investors see this as a buy opportunity then that would prevent further losses," he said.