AFP reported that crude prices were mixed in Asia with traders taking profit from an unexpected overnight rally as Iranian sabre rattling against an European oil embargo supported prices.
Analysts said that New York's main contract, light sweet crude for delivery in August shed nine cents to USD 87.57 per barrel while Brent North Sea crude for August delivery gained 22 cents to USD 100.90. Crude traders were reaping a quick profit after a price surge of more than USD 3 in late New York trade Tuesday.
Mr Justin Harper market strategist for IG Markets Singapore said that "It could be about profit-taking because it has caught many by surprise people weren't expecting (prices) to rise the way it has done. Some people are probably taking some profit out of the market."
Mr Harper said that crude would also likely continue rising in the near term as Iran expressed outrage over a European Union-imposed oil embargo on Tehran. The driving force is definitely more stability and upside in the short term, I don't think it's a peak that will come off due to the critical pressures we're seeing from Iran at the moment.
