London: World oil prices slid today on
profit-taking after soaring overnight to USD 82 per barrel on
the back of sliding US energy reserves and the weak greenback,
traders said.
New York's main contract, light sweet crude for December
delivery, fell 90 cents to USD 80.47 a barrel. The contract
had touched USD 82.00 exactly yesterday -- a level last seen
on October 14, 2008.
Elsewhere today, Brent North Sea crude for December
delivery dipped 82 cents to USD 78.87, after reaching a high
of 80.26 the previous day.
Both contracts had risen in value yesterday, lifted by a
drop in US energy stocks, which was seen as a sign of improved
demand in the world's biggest energy user.
Data released yesterday by the Department of Energy
showed US gasoline reserves sank by 2.3 million barrels in the
week to October 16. That was more than the 800,000 barrel drop
expected by most analysts.
Oil has been rising steadily in recent days, fuelled by a
weak US currency, which makes dollar-priced crude cheaper for
holders of stronger foreign units.
But there are doubts on whether oil prices can be
sustained at levels above USD 80 given the fragile state of
the global economy, despite some signs of a recovery.
"We remain cautious about the sustainability of the oil
price in the near term," analysts from the Commonwealth Bank
of Australia said in a report.
Oil prices tumbled from historic highs of more than USD
147 in July 2008 to about USD 32 in December because of the
global recession but have since risen on hopes of recovery.
Bureau Report
First Published: Friday, October 23, 2009, 00:16