Oil prices fell below $69 a barrel today in Asia following a selloff in regional stock markets.
Benchmark crude for September delivery was down 58 cents to $68.61 a barrel by late afternoon in Singapore in electronic trading on the New York Mercantile Exchange. Yesterday, the contract gained $2.44 to settle at $69.19.
Most Asian stock markets dropped sharply yesterday, with Shanghai's index tumbling as much as 5 per cent, amid concerns the recent rally was petering out.
Crude has snaked around $70 a barrel for about two months amid low summer trading volume. Investors are cheered by signs that the global economy is emerging from recession, but concerned the recovery may be sluggish.
Oil rose as high as $70.50 a barrel today before turning down, following a sharp drop in most major Asian stock indexes.
Meanwhile, Kuwait's oil minister said there is no need for the Organization of Petroleum Exporting Countries to change production levels because crude is trading at acceptable prices.
Sheik Ahmed Al Abdullah Al Sabah told reporters in Kuwait today that current prices are "not bad, not bad at all".
US crude demand has been weak so far this summer, but inventories unexpectedly fell last week, evidence consumption could be rebounding.
