Light oil prices drop below $69 as dollar gains, stocks slide

Light oil prices dropped below $69 a barrel Monday in Asia amid a stronger US dollar and a slide in regional stock markets.

Benchmark crude for October delivery was down 83 cents at $68.46 a barrel at midday Singapore time in electronic trading on the NYMEX. On Friday, the contract tumbled $2.65 to settle at $69.29.

Oil prices have fallen about $4 in the last two trading days as the dollar rebounded off its lows of the year last week. Oil is priced in dollars so it becomes more expensive when the U.S. currency gains.

The euro fell Monday in Asian trade to $1.4535 from $1.4597 on Friday and the dollar was steady at 90.45 yen.

Oil traders are also eyeing stock markets for an overall read on investor confidence. Most Asian indexes fell in early trading Monday. "Oil's being driven down by the dollar and weakness in Asian stocks," said Victor Shum, an energy analyst with consultancy Purvin & Gertz in Singapore. "There are also worries about oil demand."