The New Nation - Internet Edition

AFP, Singapore

World oil prices continued lower in Asian trade today after the US dollar earlier strengthened to its highest level since late March, dealers said. New York's main oil futures contract, light sweet crude for June delivery, slipped 52 cents to 112.00 dollars per barrel. The benchmark contract had dropped 94 cents to close at 112.52 dollars per barrel on Thursday at the New York Mercantile Exchange. Prices have eased since striking a record high of 119.93 dollars in New York last Monday. Brent North Sea crude for June delivery fell 53 cents to 109.97 dollars a barrel, after settling at 110.50 dollars on Thursday in London. The contract hit an all-time peak of 117.56 on April 25. The US currency fell to a record low of 1.6019 to the euro on April 22 but has since recovered, changing hands at 1.5477 dollars in Asian trade on Friday after shooting as high as 1.5437 on Thursday.

It was the greenback's strongest showing since March 25.

A stronger US unit makes dollar-priced crude more expensive for foreign buyers and tends to dampen demand.

Analysts said the dollar strengthened following a better- than-expected reading on US manufacturing activity and growing speculation that US interest rates will stabilise.

Crude prices fell sharply on Wednesday in response to a bigger-than- expected rise in crude oil reserves in the United States, the world's biggest energy consumer, analysts said.

The US government reported US crude inventories rose 3.8 million barrels in the week ending April 25, far stronger than market expectations for a gain of 1.5 million barrels.

Supply concerns lifted somewhat on Thursday after workers at ExxonMobil's Nigerian subsidiary ended an eight-day strike.