Oil prices fall, remain above 87 dollars

30th November 2010, Comments 0 comments

World oil prices fell slightly on Tuesday as traders booked profits following gains a day earlier, analysts said.

Brent North Sea crude for delivery in January slid 16 cents to 87.18 dollars a barrel.

New York's main contract, light sweet crude for January, shed 18 cents to 85.55 dollars a barrel.

Investors were taking profits after oil prices rallied on Monday, said Jason Feer, an analyst at Argus Media.

"People decided to take some of the profits today ... It's fairly common to have prices spike up and people taking short-term profits," he told AFP.

Crude markets surged on Monday after debt-stricken Ireland agreed to terms of a massive 113 billion-dollar (85 billion-euro) bailout package, momentarily easing eurozone debt contagion fears.

A massive leak of classified US diplomatic cables by WikiLeaks meanwhile highlighted geopolitical tensions in the oil-producing Middle East, a move analysts said could further support crude prices.

"We must remember that the WikiLeaks reports are often second-hand reporting of third-party conversations, but they paint a picture of regional concern over Iran's nuclear program and also concern from developed nation diplomats that this may lead to an oil price spike," said analysts at JPMorgan Global Energy Strategy.

© 2010 AFP

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