Oil prices below $70 in Asian trade

SINGAPORE: Oil prices stayed below $70 a barrel in Asian trade as traders took profits following a recent surge, analysts said.

New York's main futures contract, light sweet crude for delivery in July, was down 39 cents to USD 69.16 a barrel. The contract expires later today.

Brent North Sea crude for August delivery eased 24 cents to USD 68.95.

Victor Shum, an analyst with energy consultancy Purvin and Getz in Singapore, said New York crude came under pressure as traders locked in profits on the final day of trade, while a stabilising US dollar also supported lower prices.

Oil prices were due for a correction after breaching the USD 72 mark last week amid concerns they were rising far ahead of a recovery in the ailing global economy, analysts said.

"A price correction in oil is long overdue and the US dollar stabilisation would continue to put pressure on oil," said Shum.

A stronger US currency makes dollar-priced oil more expensive for buyers holding weaker currencies, which in turn tends to dampen demand and pull the market lower.

Shum also said concerns over the pace and strength of a global economic recovery helped crimp the oil market.