Oil prices slide further in Asian trade

SINGAPORE (AFP) - Oil prices slipped further in Asian trade Tuesday on profit-taking as the market anticipated a build in US gasoline (petrol) stocks, dealers said.

At 11:01 am (0301 GMT), New York's main oil futures contract, light sweet crude for delivery in September, was down 23 cents to 74.66 dollars per barrel from 74.89 dollars in late US trades on Monday.

On Friday, the previous contract, for August delivery, climbed to 76.13 dollars, the highest level since August 9 last year.

Brent North Sea Crude for September was 14 cents lower at 76.72 dollars.

Rising demand, geopolitical tensions and infrastructure problems have all pushed oil to prices not seen in nearly a year, in turn attracting speculators who are pushing the market up even further.
In the past month, crude prices have climbed about seven dollars in London and five dollars in New York.

Victor Shum, senior principal at Purvin & Gertz Inc in Singapore, said speculators decided to take some quick profits on market talk OPEC might hike production at its September meeting in Vienna.

Sucden analyst Michael Davies said the market came under pressure from comments by OPEC President and United Arab Emirates Energy Minister Mohammed al-Hamli who said Sunday that oil's strength and near-record prices were of concern and that the group is prepared to pump more oil if needed.

"When there are so many speculators in the market, the market is vulnerable to a reversal," Shum said, adding: "However, there is still a lot of strength (left)."

He said the market is now looking ahead to Wednesday's US stockpiles report, with expectations being that gasoline reserves should increase.

The market remains focused on strong demand and problems at US refineries during the North American summer holiday season when many people take to the highways, he said.