PTR: World oil prices retreat in Asia, below 49 dollars
SINGAPORE
World oil prices retreated in Asian trade Wednesday after topping a two-month high above 49 dollars overnight on concerns over weak global energy demand amid the economic downturn, analysts said.
New York's main futures contract, light sweet crude for delivery in April, fell 65 cents to 48.51 dollars a barrel in morning trade.
It had jumped 1.81 dollars in New York trade Tuesday to close at 49.16 dollars after hitting 49.82, its highest level since January 6.
Brent North Sea crude for May delivery was down 47 cents to 47.77 dollars. The April contract expired Monday at 43.98 dollars.
"Demand is still the key. Yet we still have to see the demand for oil and natural gas increase before we get too excited about a change in trend," said Phil Flynn of Alaron Trading in the United States.
"Oil demand in the US is weak and we need to see that change... If oil closes above 50 dollars a barrel we may need to start getting a bit bullish."
The market was also waiting for the release later Wednesday of the weekly US energy inventories report, which is closely watched because the United States is the world's biggest oil consumer.
Analysts said speculation that the Organisation of Petroleum Exporting Countries (OPEC) would slash production during their next meeting in May should support prices.
OPEC, which pumps about 40 percent of the world's crude, opted at their last meeting Sunday in Vienna to leave production quotas unchanged.
