Oil prices fall in Asia after US crude stocks dip

0 Comments | AFP, June, 2008

SINGAPORE (AFP) — World oil prices fell in volatile Asian trade on Thursday after rising earlier following a US government report that showed American crude reserves dipped for the fourth week in a row.

New York's main oil futures contract, light sweet crude for July delivery, was 98 cents lower at 135.40 dollars a barrel after trading as high as 136.99 in the morning.

The contract jumped 5.07 dollars to close at 136.38 on the New York Mercantile Exchange on Wednesday.

"It could be a volatile time," said David Moore, a commodities strategist at the Commonwealth Bank of Australia in Sydney, commenting on the reversal of prices after earlier gains.

"You've got to wonder, did it overshoot a bit? Or is there more to come?"

There may be...