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| Oil trading below $61 |
| AFP/ PTI / Singapore Jul 10, 2009, 09:48 IST |
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Oil traded below $61 in Asian trade today, surrendering overnight gains amid persistent worries over the weak global economy, analysts said.
New York's main contract, light sweet crude for August delivery was 33 cents lower at $60.08 a barrel.
Brent North Sea crude for August delivery eased 30 cents to $60.80.
New York crude tumbled below the $60 mark in intra-day trade yesterday, the first time since May 26. The contract has lost more than $13 from its highs last month.
"When we take a step back, the correction doesn't surprise us," said Gavin Wendt, a Sydney-based mining and resources analyst with Fat Prophets research consultancy.
Crude prices rose above $73 early last month, up more than 60 per cent since the start of the year, fuelled partly by a weak US dollar and overly upbeat hopes of a recovery in the global economy, analysts added.
"The demand-supply situation doesn't justify that sort of a rapid rise over such a short period of time," said Wendt.
"It left itself vulnerable to some degree of correction especially when the demand situation hasn't justified that sort of price rise."
A weekly energy reserves report released Wednesday by the US Department of Energy is also weighing down on crude prices as gasoline stocks rose by a bigger-than-expected 1.9 million barrels in the week to July 3.
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