Tuesday May 13, 03:45 AM
Oil eases below $124 a barrel in Asian trading
SINGAPORE (Thomson Financial) - World (WRGR.TA - news) oil prices eased further on Tuesday, trading below $124 a barrel as a firmer dollar
encouraged profit-taking in a market that remains well supported, analysts said.
New York's main oil futures contract, light sweet crude for June delivery, was 37 cents lower at $123.86 from $124.23 at the close of trading in New York on Monday.
The benchmark contract traded lower for most of the New York session, but struck a record intraday high of $126.40.
Brent North Sea crude for June delivery was down 14 cents at $122.77 a barrel after dropping
$2.49 to $122.91 on Monday.
Oil prices have more than doubled in the past year and have rocketed 25 percent since the start of the year, when they broke the $100 barrier.
Analysts cite a variety of factors for the price spikes, including rising energy demand from Asian powerhouse economies China and India, a weak U.S. dollar and OPEC's refusal to pump more crude.
Mike Fitzpatrick, an analyst at MF Global, said that with the recent strengthening of the dollar, 'it
is hardly a surprise to see oil prices backing off.'
A stronger greenback makes dollar-priced crude more expensive for holders of other currencies.
In Asian morning trade the euro was at $1.5515, down from $1.5542 in late New York trades on Monday, and from the record of $1.6002 reached on April 22.
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