Oil prices hover below US$69

26-May-10

Light, sweet crude futures for delivery in July traded at US$68.60 on the Nymex in Asia while July Brent crude on London's ICE Futures exchange dipped to US$69.6. Further strengthening of the US dollar as regional equity markets failed to hold recent gains have sent oil futures plummeting by US$1.50 in Asia. The market awaits US economic data and weekly petroleum statistics. Market sentiments have been muted on concerns caused by weakening of the Euro to US$1.2293 vs the US dollar. A stronger dollar reduces oil consumption by making crude more expensive to buy with other currencies. Oil prices were also pulled lower by weakening Asian equities, with South Korean shares selling off amid political tensions and Japanese exporters were concerned about the yen's strength vs the euro amid renewed worries over Europe's debt problems.