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| Oil prices fall in Asian trade |
| AFP/ PTI / Singapore Sep 14, 2009, 11:30 IST |
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Oil prices eased in Asian trade today amid weakness in the global equities market and as the dollar regained some of its losses, dealers said.
New York's main contract, light sweet crude for October delivery was 81 cents lower at $68.48 a barrel.
Brent North Sea crude for October delivery tumbled 55 cents to $67.14.
"The fall is really related to some weakness in equities markets. The dollar's weakness has also subsided a bit," said Victor Shum, senior principal at energy consultancy Purvin and Gertz in Singapore.
Japan's Nikkei-225 index fell 2.47 percent in morning trade Monday, hit by a negative lead from Wall Street and worries about the effect of a stronger yen on exporters.
As oil is traded in the US currency, a stronger dollar makes the commodity more expensive to holders of other monetary units, dampening demand and leading to higher prices. The opposite is true if the dollar weakens.
"We continue to have this tug-of-war between weak supply fundamentals and optimistic hopes of economic recovery, so we are likely to stay in this $65 to $75 range," Shum said.
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