Oil down in Asian trade

AFP, Tuesday 30 Nov 2010

Crude price drops on yesterday's higher profits

 Crude prices were lower in Asian trade Tuesday as traders took profits from the previous day's gains, analysts said.

New York's main contract, light sweet crude for January delivery, dipped 57 cents to 85.16 dollars a barrel in the afternoon.

Brent North Sea crude for January slid 49 cents to 86.85 dollars.

Investors were cashing out of crude markets after prices rallied on Monday, said Jason Feer, Asia-Pacific vice-president of Argus Media energy market analysts in Singapore.

"People decided to take some of the profits today... It's fairly common to have prices spike up and people taking short-term profits," he told AFP.
Crude markets had surged on Monday after debt-stricken Ireland agreed to the terms of a massive 113 billion dollar (85 billion euro) bailout package, momentarily easing eurozone debt contagion fears.

A massive leak of classified US diplomatic cables by Wikileaks highlighted geopolitical tensions in the oil-producing Middle East, a move analysts said could jack up crude prices.

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