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Oil down in Asian trade, NY crude stays above $81

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AFPPTI Singapore
Last Updated : Jan 20 2013 | 12:15 AM IST
I / Singapore October 22, 2009, 9:27 IST

Oil eased in Asian trade today after surging to $82, its highest level in an year, as investor sentiment received a boost from a decline in US energy reserves, analysts said.

New York's main contract — light sweet crude for December delivery — sank 11 cents to $81.26 a barrel. The contract hit $82 in Wednesday's trade, its highest level since October 2008.

Brent North Sea crude December delivery eased two cents to $79.67 a barrel.

Both contracts had closed higher yesterday, lifted by a drop in US energy stocks which were seen as a sign of improved demand in the world's biggest energy user.

Data released on Wednesday by the Department of Energy showed US gasoline reserves sank by 2.3 million barrels in the week to October 16. That was more than the 800,000 barrel drop expected by most analysts.

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Oil has been rising steadily in recent days, fuelled by a weak US currency which makes dollar-priced crude cheaper for holders of stronger foreign units.

But there are doubts on whether oil prices can be sustained at levels above $80 given the fragile state of the global economy, despite some signs of a recovery.  Oil prices tumbled from historic highs of more than $147 in July 2008 to about $32 in December because of the global recession but have since risen on hopes of recovery.

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First Published: Oct 22 2009 | 9:27 AM IST

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