Crude prices followed equities down in Asian trade
Monday as a strengthening greenback weighed on oil markets, analysts said.
New York's main contract, light sweet crude for delivery in
November, shed 50 cents to $78.70 a barrel.
Brent North Sea crude for November delivery dipped 77 cents
to $101.99.
Asian equities led crude markets down as traders flocked to
the safe-haven US dollar amid pessimism on the global economy, said Victor
Shum, senior principal of Purvin and Gertz energy consultants in Singapore.
"There is a selling in oil futures tracking equities and
the strengthening of the US dollar," he told AFP.
"Global markets continue to be concerned about economic
growth, especially in Europe and the US... Because of the concern about global
markets, there is a flight to safety with investors flocking to the US
dollar," Shum added.
Major Asian bourses were sharply down in early trade -- with
Tokyo and Hong Kong stocks plunging 1.52 and 3.03 percent respectively -- as
European debt fears resurfaced after Greece said it would miss its deficit
target set for it by the IMF and EU.
The US dollar rose against the euro as traders forsook stock
markets for the safe-haven currency, with the European unit trading at $1.3334
from $1.3451 in the US late Friday.
A strengthening greenback makes dollar-priced crude more
expensive to traders using other currencies.
Source : AFP
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