The January delivery contract during today's early Asian trading dropped to $81.72 a barrel on the New York Mercantile Exchange. Earlier, it advanced as much as 0.4 % to $82.10.
Oil traded near $82 a barrel in New York yesterday after climbing Monday as analyst estimates showed crude inventories dropped for a third week in the U.S., the world's largest energy consumer. Spot crude declined this morning as the dollar strengthened versus the EUR and is currently trading near $81.50 a barrel.
Despite the decline in inventories Oil prices remain under pressure over speculations that Europe's debt crisis might spread, debilitating economic growth and thus reducing fuel demand. Traders are advised to follow any development from the region as any negative data will likely push oil prices back towards $80 a barrel.
