Oil eases below $124 per barrel
World oil prices ease further, trading below $124 a barrel as a firmer dollar encouraged profit-taking in a market that remains well-supported.business Updated: May 13, 2008 08:36 IST
World oil prices on Tuesday eased further, trading below $124 a barrel as a firmer dollar encouraged profit-taking in a market that remains well-supported, analysts said.
New York's main oil futures contract, light sweet crude for June delivery, was 37 cents lower at $123.86 from $124.23 at the close of trading in New York on Monday.
The benchmark contract traded lower for most of the New York session, but struck a record intraday high of $126.40.
Brent North Sea crude for June delivery was 14 cents lower at $122.77 a barrel after a drop of $2.49 to $122.91 dollars on Monday.
Oil prices have more than doubled in the past year and have rocketed 25 per cent since the start of the year, when they broke the $100 barrier.
Analysts cite a variety of factors for the price spikes, including rising energy demand from Asian powerhouse economies China and India, a weak US dollar and OPEC's refusal to pump more crude.
Mike Fitzpatrick, an analyst at MF Global, said that with the US dollar's strengthening more recently, "it is hardly a surprise to see oil prices backing off."
A stronger greenback makes dollar-priced crude more expensive for holders of other currencies.
In Asian morning trade the euro was at $1.5515, down from $1.5542 in late New York trades on Monday, and from the record of $1.