Oil prices slide further in Asian trade

Crude prices slid further in Asian trade today as markets reacted to falling consumer confidence in the United States, analysts said.      

New York's main futures contract, light sweet crude for delivery in September, shed 56 cents to $66.95 a barrel in early trade from its close on Friday.      

Brent North Sea crude for October delivery fell 44 cents to $71.00.      

Prices continued moving downwards as data released by the University of Michigan on Friday showed an unexpected fall in consumer sentiment, which spooked the commodities and equities markets, analysts said.      

"The report showed a drop in consumer confidence and that weighed on the oil market. The oil market was also pressured by the falling stock markets," said Victor Shum, senior principal of Purvin and Gertz energy consultants in Singapore.      

The report stated that its consumer sentiment index dipped to a preliminary 63.2 from 66.0 in August, confounding most analysts who had expected it to rise to 69.0 and raising further red flags on consumer spending, the main driver of the US economy.      

Shum added that weak oil fundamentals would continue to put a peg on crude prices. "Given the very weak oil market fundamentals, the mid-60s to high-60s is about the right range. The path of least resistance is down," he said.