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Oil prices ease but stay above $71

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AFP PTI Singapore
Last Updated : Jan 20 2013 | 12:09 AM IST

Oil eased in Asian trade today on profit-taking but stayed above $71 a barrel ahead of this week's Group of 20 summit and a US central bank meeting, analysts said.

New York's main contract, light sweet crude for November delivery, was down 44 cents to $71.32 a barrel in morning trade. The October contract expired yesterday.

Brent North Sea crude for November dipped 59 cents to $69.94.

Investors are closely monitoring the results of a US Federal Reserve policy meeting that could indicate the pace of economic recovery of the United States, the biggest energy consumer. The meeting ends today.

Leaders from the Group of 20 developed and developing nations are also expected to discuss the state of the global economy when they meet later this week in the US city of Pittsburgh.

Energy demand plunged after the global economy slipped into its worst recession since the 1930s late last year.

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This sent oil prices tumbling from historic highs of more than $147 in July 2008 to around $32 in December.

Prices have since clawed back to around $70, but investors remain concerned over the pace of the global economic recovery.

Analysts expect the US central bank to keep key interest rates at existing levels of virtually zero per cent in a bid to stimulate domestic demand and sustain the recovery.

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First Published: Sep 23 2009 | 10:00 AM IST

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