Crude down on profit-taking, French rating cut

I / Singapore November 20, 2012, 9:42 IST

Crude was down in Asia today as traders took profits and ratings agency Moody's downgraded the French government bond rating, analysts said.

New York's main contract, light sweet crude for delivery in January, shed 31 cents to $88.97 a barrel and Brent North Sea crude for January delivery fell 18 cents to $111.52.

"Today there's a bit more of a risk-off theme with the French downgrade and a bit of profit-taking on the back of yesterday's big move," said Jason Hughes, head of premium client management for IG Markets Singapore.

Crude surged more than $2 yesterday as violence intensified in the Israel-Gaza conflict, sparking fresh concern about supplies from the crude-rich Middle East.

Israeli strikes killed 32 Palestinians yesterday, taking the Gaza death toll to 109 as UN chief Ban Ki-moon joined efforts to end the worst violence in four years.

In Europe, France came under fresh pressure after Moody's became the second of the three major ratings agency to downgrade its top rating.