Oil prices ease on profit-taking after hitting nine-month peaks
Wednesday, 20 June 2007
SINGAPORE, June 19 (AFP): Oil prices eased in Asian trade today on profit-taking after hitting their highest levels since early September 2006 overnight, dealers said.
The easier tone is however likely to be temporary as factors that drove the market higher, such as concerns over US gasoline (petrol) reserves and geopolitical tensions in the Middle East, remain, they said.
New York's main contract, light sweet crude for July delivery, was down 12 cents to 68.97 US dollars a barrel from 69.09 dollars in late US trades Monday when it had jumped as much as 1.09 dollars. Brent North Sea crude for July dropped eight cents to 72.10 dollars.
Dealers said continued concerns about US demand for gasoline during the current peak summer driving season drove oil prices higher overnight and remained supportive.
Signals from the Organisation of the Petroleum Exporting Countries (OPEC) that the oil cartel will not boost supply to cool prices are also weighing on the market, they said.
"Other factors underpinning oil prices include concerns over the possibility of heightened tensions in the Middle East, continuing worries over the adequacy of US gasoline supplies and recent indications that OPEC is unlikely to raise production ceilings in the near-term," the Commonwealth Bank of Australia said.
The market is also watching the situation in Nigeria, Africa's largest oil producer and the world's sixth biggest exporter, where unions Monday delayed the start of a general strike by two days.
The easier tone is however likely to be temporary as factors that drove the market higher, such as concerns over US gasoline (petrol) reserves and geopolitical tensions in the Middle East, remain, they said.
New York's main contract, light sweet crude for July delivery, was down 12 cents to 68.97 US dollars a barrel from 69.09 dollars in late US trades Monday when it had jumped as much as 1.09 dollars. Brent North Sea crude for July dropped eight cents to 72.10 dollars.
Dealers said continued concerns about US demand for gasoline during the current peak summer driving season drove oil prices higher overnight and remained supportive.
Signals from the Organisation of the Petroleum Exporting Countries (OPEC) that the oil cartel will not boost supply to cool prices are also weighing on the market, they said.
"Other factors underpinning oil prices include concerns over the possibility of heightened tensions in the Middle East, continuing worries over the adequacy of US gasoline supplies and recent indications that OPEC is unlikely to raise production ceilings in the near-term," the Commonwealth Bank of Australia said.
The market is also watching the situation in Nigeria, Africa's largest oil producer and the world's sixth biggest exporter, where unions Monday delayed the start of a general strike by two days.