Oil eases below $60

Oil eased slightly in Asian trade today amid fresh concerns about the US economy after government data showed housing starts in the country fell to a record low in April, analysts said.

New York's main contract, light sweet crude for July delivery, dropped 15 cents to $59.95 a barrel.

Brent North Sea crude for July delivery eased one cent to $58.91 a barrel.

"The housing starts numbers left commodity markets more cautious about the US economic outlook," David Moore, a commodity strategist with the Commonwealth Bank of Australia, said in a report.

Data released yesterday by the US Commerce Department showed housing starts and building permits slumped in April to record lows, underscoring the woes of the troubled sector during the current recession.

Crude prices had touched six-month highs above $60 yesterday, pushed up by buoyant stock markets and optimism for an economic recovery but analysts have said it was still too early to assess if an upturn was around the corner.

"The timing of the economic recovery is very important because inventories are still high, demand is still low, OPEC (the powerful petroleum cartel) is  struggling to cut more production," said Adam Sieminski of Deutsche Bank.