World oil prices dropped below $88 a barrel mark in Asian trade Wednesday as US gasoline stockpiles surged while profit taking also hit the black gold.
Light sweet crude for January delivery was seen trading at $87.91 a barrel at 12.00 noon Singapore time while Brent crude was at $90.31 a barrel in London.
In other Nymex trading in January contracts, heating oil fell 1.8 cents to $2.45 a gallon, gasoline futures gave up 2.3 cents to $2.29 a gallon and natural gas lost 2 cents at $4.38 per 1,000 cubic feet.
Analysts also attributed oil s dip for a second day in succession to concerns that Europe s debt crisis is spreading and fuel demand will drop.
They also said proposed US tax cuts to extend it from Bush-era tax cuts affected oil as it would cap government revenue in the world's largesst oil-consuming nation, at a time when the Federal Reserve is pumping $600 billion into the economy to keep the recovery on track.
The prospect of extended tax cuts also reduced appetite for commodities, analysts added.
Futures extended yesterday s 0.8 percent slide as traders secured profits from crude s rally to $90.76 a barrel, the highest in 26 months
Oil prices fell in Asian trade on Wednesday as traders took profits after prices reached two-year highs on Monday, analysts said.
New York's main contract, light sweet crude for January delivery, slid 67 cents to $88.02 per barrel. Brent North Sea crude for delivery in January slipped 59 cents to $90.80.
Light sweet crude for January delivery was seen trading at $87.91 a barrel at 12.00 noon Singapore time while Brent crude was at $90.31 a barrel in London.
In other Nymex trading in January contracts, heating oil fell 1.8 cents to $2.45 a gallon, gasoline futures gave up 2.3 cents to $2.29 a gallon and natural gas lost 2 cents at $4.38 per 1,000 cubic feet.
Analysts also attributed oil s dip for a second day in succession to concerns that Europe s debt crisis is spreading and fuel demand will drop.
They also said proposed US tax cuts to extend it from Bush-era tax cuts affected oil as it would cap government revenue in the world's largesst oil-consuming nation, at a time when the Federal Reserve is pumping $600 billion into the economy to keep the recovery on track.
The prospect of extended tax cuts also reduced appetite for commodities, analysts added.
Futures extended yesterday s 0.8 percent slide as traders secured profits from crude s rally to $90.76 a barrel, the highest in 26 months
Oil prices fell in Asian trade on Wednesday as traders took profits after prices reached two-year highs on Monday, analysts said.
New York's main contract, light sweet crude for January delivery, slid 67 cents to $88.02 per barrel. Brent North Sea crude for delivery in January slipped 59 cents to $90.80.
