Oil prices trading with support around $73 on profit taking

Oil prices fell Wednesday in Asia trading but have some support around the $73 range, amid profit taking triggered by an overnight two percent oil price rise in New York and unexpectedly large gains in US crude oil stockpiles.

The US economy and the Dollar Index will remain important cues for crude oil futures prices for now, as the closely watched weekly oil data by the US EIA were delayed, and are now due out Friday, analysts said.

On the NYMEX, Light crude oil futures for delivery in March traded at $73.31 a barrel at 0530 GMT, down $0.44 in the Globex electronic session, while in London, Brent crude oil futures on London’s ICE Futures exchange fell $0.51 to $71.62 a barrel.

A weaker US dollar amid speculation of a rescue package being prepared for debt-laden European countries boosted crude oil prices in floor trade. However, after the API, an industry group, reported late Tuesday a sharp rise in crude oil inventories, oil prices began slipping in after hours trading.

“The market is very volatile” as many traders have lost direction are easily influenced by currency or other issues, said Tomokazu Amano, an analyst with Mitsubishi Corporation Futures in Tokyo. Still, crude oil prices enjoyed support around $73 a barrel throughout Wednesday’s Asian trading thanks to some bargain hunting, he added.

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