Singapore: Oil eased in Asian trade on Wednesday
on profit-taking but stayed above USD 71 a barrel ahead of
this week's Group of 20 summit and a US central bank meeting,
analysts said.
New York's main contract, light sweet crude for November
delivery, was down 44 cents to USD 71.32 a barrel in morning
trade. The October contract expired yesterday.
Brent North Sea crude for November dipped 59 cents to
USD 69.94.
Investors are closely monitoring the results of a US
Federal Reserve policy meeting that could indicate the pace of
economic recovery of the United States, the biggest energy
consumer. The meeting ends today.
Leaders from the Group of 20 developed and developing
nations are also expected to discuss the state of the global
economy when they meet later this week in the US city of
Pittsburgh.
Energy demand plunged after the global economy slipped
into its worst recession since the 1930s late last year.
This sent oil prices tumbling from historic highs of
more than USD 147 in July 2008 to around USD 32 in December.
Prices have since clawed back to around USD 70, but
investors remain concerned over the pace of the global
economic recovery.
Analysts expect the US central bank to keep key interest
rates at existing levels of virtually zero per cent in a bid
to stimulate domestic demand and sustain the recovery.
Bureau Report
First Published: Wednesday, September 23, 2009, 11:12