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Oil price eases in Asia, but still under pressure

Oil price eases in Asia, but still under pressure

Oil eased in Asian trade yesterday as traders continued to evaluate the pace of recovery in the U.S. economy, the world's biggest energy user, analysts said. New York's main contract, light sweet crude for November delivery dropped to US$70.30 a barrel.
Brent North Sea crude for November delivery fell US$0.09 to US$67.95 a barrel. Market players continued to digest economic data from the U.S. that could help indicate demand prospects.
New data released Monday by the Institute of Supply Management showed the U.S. services sector grew in September for the first time in a year with its non-manufacturing index rising to 50.9 percent from 48.4 percent in August.
Services makes up the lion's share of U.S. economic activity and employment, and is therefore critical to recovery from the long recession. The ISM index had declined for 11 consecutive months.
"It was its highest reading since May 2009 and the first time since August last year that this part of the U.S. economy was growing," said Dariusz Kowalczyk, chief investment strategist with SJS Markets financial house.
Phil Flynn, an analyst with PFG Best, cautioned that oil prices could remain under pressure.
"Job losses are mounting and oil supplies are rising. It is time to face facts. Recent economic data is undermining the bull's oil case," he said.


Updated : 2021-10-18 05:35 GMT+08:00