Oil prices ease back after surge

An oil rig is shown in this file photo.

An oil rig is shown in this file photo.

Published Aug 6, 2012

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Oil prices retreated Monday as traders took profits following a pre-weekend surge on positive jobs data from the United States, the world's biggest consumer of crude.

Brent North Sea crude for delivery in September dropped 88 cents to $108.06 a barrel in London midday deals.

New York's main contract, West Texas Intermediate (WTI) light sweet crude for September, fell 42 cents to $90.98.

“Mild profit-taking is being seen, with Brent and WTI easing back from Friday's highs,” said Sucden Financial Research analyst Jack Pollard.

A rally on Friday saw WTI prices surge more than four dollars to pass $91 a barrel, while Brent rose more than three dollars to within striking distance of $109.

Crude prices were weaker “after rallying on a stronger-than-expected US jobs report, while the market awaited Chinese trade data due later this week for trading cues,” Phillip Futures said in a report.

On traders' watchlist for this week is the release of a slew of economic data from China which will provide an update on the economic health of the world's largest energy consumer. - Sapa-AFP

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