Oil fell below $54 a barrel today, having touched a 2009 high in the previous session on stronger equities which the market hopes signal a recovery in oil demand down the road.
Asian stocks edged down today, after more grim economic data out of Japan, but are still heading for their biggest
weekly gain in nearly 5 months on increasing optimism that the worst is over for the global economy.
Japan's Nikkei index settled down 0.11 per cent, while The MSCI index of Asia Pacific stocks outside Japan fell 0.2 per cent by 6am GMT.
US light crude for May delivery fell 69 cents to $53.65 a barrel by 0604 GMT, having gained nearly 3 per cent yesterday to $54.34 a barrel, after rising as high as $54.66.
London Brent crude fell 56 cents to $52.90.
Oil prices have gained more than 35 per cent since mid-February, on the back of rallying stock markets and
tightening oil supplies as the Organization of the Petroleum Exporting Countries (OPEC) has curbed exports.
Opec seaborne oil exports, excluding Angola and Ecuador, will fall 770,000 barrels per day in the four weeks to April 11th to 22.23 million bpd, deepening the previous week's five-and-a-half- year low, UK consultancy Oil Movements said yesterday.
Opec is implementing output cuts totalling 4.2 million bpd from its production levels in September to prop up prices, which fell below $35 in December, down from July's record highs at $147 a barrel as the global economic crisis eats into oil demand.
Opec could agree on a new production cut at the next meeting in May if it is warranted by market circumstances, such as high global crude stocks, Venezuelan Oil minister Rafael Ramirez said yesterday.
Reuters