24 June,2009 11:30 AM IST | | AFP
Oil traded lower in Asia today after a strong rebound overnight, but prices remain under pressure from a weak dollar and the political crisis gripping crude producer Iran, analysts said.
In morning trade, New York's main futures contract, light sweet crude for delivery in August, fell 87 cents to USD 68.37 a barrel. It bounced USD 1.74 to end at USD 69.24 in the US yesterday.
London's Brent North Sea crude for August dipped 91 cents to USD 67.89 after surging USD 1.82 overnight. Analysts said weakness in the US dollar helped push prices higher. A fall in the greenback makes dollar-priced oil cheaper for buyers holding stronger currencies, which tends to boost demand and lift prices.
DBS Group said investors will be watching any decision later today by the US Federal Open Market Committee (FOMC) on interest rates because of its impact on the dollar. "After the strong rebound in currencies... all eyes will be on (the) FOMC meeting to see if they can extend their appreciation," DBS said in a research note.
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"To resume the US dollar's decline, the market wants the Fed to assure that it is not about to hike rates anytime this year." Oil prices on Tuesday tumbled below USD 67, in line with falling stock markets and worries over a global economic recovery.
