Oil prices lower in Asian trade

Oil traded lower in Asia today as investors cashed in on profits after an overnight rally that pushed prices beyond $62, analysts said.

New York's main futures contract, light sweet crude for July delivery, was down 56 cents to $61.48 a barrel.

Brent North Sea crude for delivery in July shed 53 cents to $60.06 a barrel.

Prices had rocketed to new six-month highs of more than $62 overnight after data released by the US Department of Energy showed a fall in oil inventories.

The report showed US crude reserves tumbling 2.1 million barrels in the week ending May 15, far more than market expectations of a 700,000 barrel drop.

This indicated that energy demand was holding firm despite a deep recession in the United States, the world's biggest economy and the largest oil consumer.

"There was plenty of bullish data in the inventory report to cause oil to get to such a high level," said Victor Shum, senior principal at energy consultancy Purvin and Gertz in Singapore.

Shum added that the upcoming onset of the summer vacation period when Americans traditionally hit the roads in vast numbers would further strengthen oil prices.

"We can expect ongoing price strength for the remainder of the week and might see even stronger prices when the Nymex (New York Mercantile Exchange) closes on Friday," he said.