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Oil prices ease in Asian trade but stay above $53/ bl

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AFP PTI Singapore
Last Updated : Jan 19 2013 | 11:26 PM IST

Oil prices fell in Asian trade today after rising to four-month highs on hopes of a US economic recovery, analysts said.

New York's main futures contract, light sweet crude for delivery in May, shed 67 cents to $53.31 a barrel after closing at 53.98 yesterday.

Brent North Sea crude for May delivery retreated 46 cents to $53.04.

Monetary measures to be implemented by the US government to clear banks of toxic assets were buoying market sentiment, analysts said.

"We believe commodities are the asset class most likely to benefit from this monetary expansion," said Rod Smyth, a strategist at Riverfront Investment Group, in a note to clients.

"If the stimulus works and economic demand recovers, economically sensitive commodities like oil and industrial metals will benefit."

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The US Treasury unveiled a long-awaited plan Monday to buy up toxic assets clogging the financial system by using government funds, loans to investors and guarantees intended to attract private capital.

However, another analyst cautioned against celebrating prematurely.

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First Published: Mar 25 2009 | 10:46 AM IST

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