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Oil prices below $70 in Asian trade

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AFPPTI Singapore
Last Updated : Jan 19 2013 | 11:54 PM IST
I / Singapore June 22, 2009, 9:49 IST

Oil prices stayed below $70 a barrel in Asian trade today 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 a barrel. The contract expires later today.

Brent North Sea crude for August delivery eased 24 cents to $68.95.

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 $ also supported lower prices.

Oil prices were due for a correction after breaching the $72 mark last week amid concerns they were rising far ahead of a recovery in the ailing global economy, analysts said.

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"A price correction in oil is long overdue and the $ stabilisation would continue to put pressure on oil," said Shum.

A stronger US currency makes $-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.

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First Published: Jun 22 2009 | 9:49 AM IST

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