Oil below 88 dollars in Asia

December 08, 2010 | 13:36

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Oil fell below $88 in Asian trade on Wednesday as traders took profits after prices reached two-year highs at the start of the week, analysts said.

New York's main contract, light sweet crude for January delivery, slid 95 cents to $87.74 a barrel in the afternoon while Brent North Sea crude for January fell $1.05 to $90.34.

"The weakness we've had yesterday and today is just a bit of profit-taking," said Ben Westmore, minerals and energy economist for the National Australia Bank in Melbourne.

Crude prices hit two-year highs Monday after four consecutive days of gains, boosted by a cold snap in Europe and rising sentiment over the global economic outlook.

However, as well as the profit-taking Westmore added that continuing eurozone debt worries were also weighing on crude markets.

European finance ministers refused Monday to be bounced into boosting bailout funding, following fierce resistance from some of the eurozone's best-performing economies.

AFP

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