Oil price eases back towards $102

Oil eased toward $102 this morning off a record near $104 hit in the previous session.

Oil eased toward $102 this morning off a record near $104 hit in the previous session.

But the bullish momentum for commodities remained intact, and Opec was expected to leave output steady at this week's meeting.

US light crude for April delivery fell 35 cents at $102.10 a barrel by 6.45am, after touching record of $103.95 yesterday as the dollar briefly plunged to lifetime lows against the euro and a basket of major currencies.

Prices retreated from the peak later yesterday to settle 61 cents higher at $102.45 as the dollar rebounded, but eyes remained on new records.

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London Brent crude lost 30 cents at $100.18.

Continued signs that Opec will not raise output when it meets on Wednesday added support to oil prices, however.

United Arab Emirates Oil Minister Mohammed al-Hamli said today the oil market was "adequately supplied", the latest official to signal that Opec is likely to refrain from boosting output.