Wednesday, June 22 2005 10:12 Hrs (IST) - World Time -

Singapore: Oil prices futures were today (Jun 22, 2005) slightly easier in Asian trade on continued profit taking after record highs and ahead of the eagerly anticipated release of US weekly stocks report, dealers said.

At 08:15 hrs (IST), New York's new main contract, light sweet crude for August delivery, was down four cents to $59.00 a barrel from its close of $59.04 in the United States yesterday (Jun21, 2005).

The July contract, which expired yesterday, hit a record high of $59.70 in US trading hours before retreating to close at $58.90.

"I think the strong rally has led to profit-taking and the players are taking a cautionary position ahead of the US weekly stock numbers," said Mark Pervan, a commodities analyst with Daiwa Securities in Melbourne.

Renewed concerns about tight supply in the United States pushed oil to the record high yesterday but now the market is waiting on the US Department of Energy's (DoE) weekly report of petroleum stocks, due later today, for their next lead.

Pervan said he is not ruling out the possibility of prices hitting $60 a barrel but for that to happen, it will require a sharp drop in US crude stocks, supply disruptions in any of the major oil-producing nations or concerns about refining capacity.

"That will be a key resistance price to break through. I would say it will need another meaningful drop in weekly crude supply or further concerns about refining capacity," Pervan said. "Prices could move quickly to $65 if it hits 60," he added.