AFP - Wednesday, May 13
SINGAPORE, May 12, 2009 (AFP) - Oil prices dipped in Asian trade Tuesday, extending overnight falls as investors took profits following last week's rally, analysts said.
The market was also waiting for the weekly US energy inventory report for signs of strengthening demand in the world's biggest economy, which is reeling from a deep recession, they said.
New York's main futures contract, light sweet crude for June delivery, fell 44 cents to 58.06 dollars a barrel in the afternoon.
Brent North Sea crude for delivery in June was down 42 cents to 57.07.
"This market seems to have found a bit of a comfort zone (at current price levels)," said Dave Ernsberger, a senior editorial director at energy information provider Platts.
"Traders are waiting for US inventory data."
The US Department of Energy is due to release its weekly report showing levels of crude stockpiles in the world's largest energy consumer on Wednesday.
Ernsberger said he expects the rally in oil prices to weaken as the ailing global economy will keep demand down.
"There's not much steam left in the rally. The market's done a lot in the short span of time, there's not much it can do in this economic environment," he said.
Traders were also awaiting the outcome of an Organisation of the Petroleum Exporting Countries (OPEC) meeting on May 28 in Vienna, Andy Lipow at Lipow Oil Associates said.
OPEC secretary general Abdalla Salem El-Badri said recently that the cartel wants to see crude at more than 70 dollars a barrel, as its members appeared divided on whether to further reduce output to support prices.
From Yahoo! News; see the source article here.
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