Oil fell in Asian trade today as investors took profit after a recent rally sent prices to $80 for the first time in a year, analysts said.
New York's main contract, light sweet crude for December delivery, fell 47 cents to $78.65 a barrel. The November contract, which expired on Tuesday, briefly touched $80.05 — its highest since October 14, 2008 — before easing to close at $79.09.
Brent North Sea crude for December delivery was off 48 cents to $76.76.
Analysts reasoned a weak dollar and an upbeat mood about the global economic recovery are driving the surge in crude prices.
"The global recession has ended and we expect the recovery to look impressive in many economies — notably the US, China and Japan — over the next few quarters," analysts from London-based Capital Economics consultancy said in a recent report.
"The upswing is driven by a mix of factors, notably the support from policy stimulus, the release of pent-up investment spending, the turn in the inventory cycle, lower headline inflation and, especially important for Asian exporters, the revival in world trade.
