Oil lower in Asian trade

October 26, 2010 | 10:55

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Oil fell in Asian hours Tuesday as traders took profits following a rally in New York brought about by a weak US dollar, analysts said.

New York's main contract, light sweet crude for December delivery, fell eight cents to $82.44 a barrel. The contract had closed Monday 83 cents higher at $82.52.

Brent North Sea crude for December delivery was nine cents lower at $83.45 after closing 96 cents stronger on Monday.

"It could be profit-taking as the oil market is taking a breather," said Serene Lim, a Singapore-based commodities analyst with Australia's ANZ bank.

"There doesn't seem to be much supportive news (at the moment)," she told AFP.

Crude futures rallied overnight in US trade Monday as the weak greenback encouraged investor interest in dollar-denominated commodities including oil, which has become cheaper for buyers holding stronger foreign currencies.

The euro traded at $1.3969 in late US trade Monday but had dropped slightly to $1.3959 in early Asian trade Tuesday.

The dollar changed hands at 80.74 yen Tuesday, down from 80.82 late Monday.

AFP

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