Singapore: World oil prices today eased further, trading below US $ 124 a barrel as a firmer dollar encouraged profit-taking in a market that remains well-supported, analysts said.

New York's main oil futures contract, light sweet crude for June delivery, was 37 cents lower at US $ 123.86 from US $ 124.23 at the close of trading in New York yesterday.

The benchmark contract traded lower for most of the New York session, but struck a record intraday high of US $ 126.40.

Brent North Sea crude for June delivery was 14 cents lower at US $ 122.77 a barrel after a drop of US $ 2.49 to US $ 122.91 dollars yesterday.

Oil prices have more than doubled in the past year and have rocketed 25 per cent since the start of the year, when they broke the USD 100 barrier.

Analysts cite a variety of factors for the price spikes, including rising energy demand from Asian powerhouse economies China and India, a weak US dollar and OPEC's refusal to pump more crude.

Mike Fitzpatrick, an analyst at MF Global, said that with the US dollar's strengthening more recently, "it is hardly a surprise to see oil prices backing off."
A stronger greenback makes dollar-priced crude more expensive for holders of other currencies.

In Asian morning trade the euro was at USD 1.5515, down from USD 1.5542 in late New York trades yesterday, and from the record of USD 1.6002 reached on April 22.

Source : PTI