SINGAPORE (Commodity Online) : Global oil prices continued its southern journey after overnight slumps on concerns about an oil glut in the U.S. Midwest and the possibility of a European economic slowdown.
Light sweet crude for July delivery was seen trading at $70.14 a barrel at 11.30 a.m Singapore time while Brent crude was at $ 71.11 a barrel in London.
The July contract takes over as the benchmark, most-traded contract with the expiry overnight of the June contract.
Analysts said the black gold dropped for a seventh time in eight sessions, on unabated fears that Europe's debt crisis could hurt global economic growth and slow energy demand.
On Thursday, trade for the June contract saw the largest intraday move of around $7 since the end of 2008, tumbling nearly 3 percent on its expiration.
The contract fell as low as $64.24 per barrel, its lowest level since July 30, 2009 and recovered to end at $68.01, down $1.86 from Wednesday.
The euro fell to $1.2275 yesterday from $1.2352 on Saturday while the dollar slid to 91.88 from 92.30.
London's Brent North Sea crude for July sank $1.84 to $71.84, after hitting $70.20, its lowest level since early February.
Oil came under further pressure on late Thursday on reports that crude stored at the delivery hub in Cushing, Oklahoma, rose 500,000 barrels in the week to May 18.
However, prices may gain some support later on Friday as China is due to release details of its April oil demand.
Initial data has shown that China, the world's second-largest oil consumer, posted record rates both in refinery output and crude imports last month, following seven months of double-digit growth in apparent oil demand.
