Oil below $87 in Asia, retreating from year high
Wednesday, 10 November 2010
BANGKOK, Nov 9 (AP): Oil prices hovered under $87 a barrel Tuesday in Asia, retreating from a high for the year as regional stock markets fell.
Benchmark oil for December delivery was down 21 cents at $86.85 a barrel at late afternoon Bangkok time in electronic trading on the NewYork Mercantile Exchange.
Oil settled up 21 cents at $87.06 a barrel Monday - a closing high for the year. Earlier in the day it reached $87.49, eclipsing the previous intraday high of $87.15 in early May as October's better-than-expected jobs figures added to expectations that demand for fuel will improve.
In Asia Tuesday, crude traders took their cues from stock markets which were mostly lower as euphoria over the Federal Reserve's massive stimulus faded, halting a rally that drove some of the region's benchmarks to record highs.
The US Labour Department reported Friday that employers added 151,000 jobs in October, the first net gain in five months. The unemployment rate remained at 9.6 per cent.
The jobs report could signal more improvement in the world's largest economy, which could lead to stronger demand from consumers and businesses for fuel. In the short-term, however, improved economic indicators could strengthen the dollar and dampen enthusiasm for oil.
Benchmark oil for December delivery was down 21 cents at $86.85 a barrel at late afternoon Bangkok time in electronic trading on the NewYork Mercantile Exchange.
Oil settled up 21 cents at $87.06 a barrel Monday - a closing high for the year. Earlier in the day it reached $87.49, eclipsing the previous intraday high of $87.15 in early May as October's better-than-expected jobs figures added to expectations that demand for fuel will improve.
In Asia Tuesday, crude traders took their cues from stock markets which were mostly lower as euphoria over the Federal Reserve's massive stimulus faded, halting a rally that drove some of the region's benchmarks to record highs.
The US Labour Department reported Friday that employers added 151,000 jobs in October, the first net gain in five months. The unemployment rate remained at 9.6 per cent.
The jobs report could signal more improvement in the world's largest economy, which could lead to stronger demand from consumers and businesses for fuel. In the short-term, however, improved economic indicators could strengthen the dollar and dampen enthusiasm for oil.