Oil down in Asian trade

Oil was lower in Asian trade today as a strengthening greenback dragged down markets, analysts said.

New York's main contract, light sweet crude for delivery in December, slipped 25 cents to $86.47 a barrel.

Brent North Sea crude for December delivery fell seven cents to $88.26.

A greenback rally was causing investors to lose interest in crude, analysts said.

"Oil slipped slightly... As the US dollar rose against the euro," said the Commonwealth Bank of Australia in a report.

The euro fell to $1.3751 in early Asian trade, slipping from $1.3773 late yesterday.

The slump in oil markets flew against bullish crude prices and demand forecasts by the International Energy Agency (IEA) as well as predictions of a decrease in US stockpiles.

 

The IEA had Tuesday forecast that crude prices would rise to $113 a barrel by 2035, and projected demand for oil to rise by 18 per cent between 2009 and 2035, driven by developing countries, with nearly half the increase accounted for by China.

The American Petroleum Institute also Tuesday forecast a crude stock fall of 7.4 million barrels in the week to November 5, 2010.