Singapore: Oil fell in Asian trade today as prices came under continued pressure from a strong dollar and US demand concerns, analysts said. New York's main contract, light sweet crude for January delivery, was down 70 cents to USD 69.17 a barrel.
Brent North Sea crude for January delivery eased 52 cents to USD 71.36 a barrel.
"Oil is under pressure because of worries about the
strength of the US dollar," said Victor Shum, a Singapore-
based analyst with energy consultancy Purvin and Gertz.
"Although the dollar has weakened this morning, the
trend over recent days was a strengthening dollar," he said.
In Asian trade today, the dollar fell to 88.83 yen
from 89.08 in late US trade Friday while the euro changed
hands at USD 1.4634 from 1.4613.
The anticipation of a rate hike spurred the dollar
higher in recent days as investors sought better yields,
making dollar-priced oil more expensive to buyers using other
currencies.
"I do think the dollar will remain a leading driver of
oil (in the near-term)," said Shum.
Existing worries over sluggish US energy demand was
also another factor undermining oil futures, he said.
"US demand is weak, that is adding to the weight on
oil."
PTI
First Published: Monday, December 14, 2009, 11:12