Oil eases below €67 a barrel

Oil eased below $67 a barrel today, after a nearly 4 per cent fall in the previous session, pressured by a stronger dollar and investor concern about the economic outlook and energy demand.

US crude for August delivery slipped 9 cents to $66.64 a barrel by 8am Irish time. London Brent crude fell 14 cents to $66.51.

NYMEX floor trading will be closed today for the US Independence Day holiday. Electronic trading will be open. Volume may be lighter than normal, leading to volatile trading, analysts said.

The dollar edged higher against a basket of other major currencies, limiting the appeal of oil and commodities as an inflation hedge. European stocks pared early gains.

Oil prices have doubled from a low of $32.40 a barrel in December last year and surged over 42 per cent in the last quarter -- the largest quarterly gain since 1990 -- partly on hopes of economic recovery.

But the latest economic data is suggesting that a global recovery will be choppy this year, if it occurs at all. Economists have warned that surging unemployment would be one of the key threats to a sustainable recovery.

JP Morgan said in a report today that it expects oil prices to correct from the recent rally to about $60 a barrel or lower, amid ongoing demand weakness.

Reuters