Oil prices slip in Asian trade

Oil prices eased in Asian trade today after breaching the $58 mark last week on hopes that the flagging global economy was on the mend, analysts said.

New York's main futures contract, light sweet crude for delivery in June, was down 20 cents to $58.43 a barrel from Friday's close at around 0200 GMT.

Brent North Sea crude for June delivery shed 10 cents to $58.04. Analysts said buoyant oil prices were a cause for concern as the fundamentals of the oil markets were still weak.

"Considering how far and fast oil has bounced back in the face of very poor fundamentals, some pullback is possible," said Victor Shum, senior principal of international energy consultants Purvin and Gertz in Singapore.

However, Shum added that prices were likely to rise further in the week ahead as "$60 looks like a magnet for investors in oil."
   
Investors' hopes received a boost Friday after official data showed US labor market losses eased in April.The markets were also reassured by the release of "stress tests" on the US banking system, with major lenders seen as being able to cover capital shortfalls.

Oil prices in New York closed at $58.63 a barrel on Friday, capping a more than 10 per cent rise over the week and hitting an intra-day high of $58.69, a level unseen since mid-November.