Oil prices took a breather in Asian trade today as investors locked in profits after a strong rally following the European Central Bank’s decision to cut interest rates.
New York’s main contract, light sweet crude for delivery in June, dropped 17 cents to $93.82 a barrel and Brent North Sea crude for June delivery shed 16 cents to $102.69.
Prices surged nearly $3.0 in closing deals on Thursday after the ECB slashed the interest rates to a record low of 0.5 per cent, with upbeat US economic data also boosting the sentiment.
“Crude posted quite a strong rally after the ECB rate cut. We’re seeing some profit-taking ahead of the week-end,” Ker Chung Yang, senior investment analyst at Phillip Futures in Singapore, said.
The widely expected ECB move on Thursday is part of the efforts to boost demand and stimulate growth in the debt-stricken euro zone.
In the United States, new claims for unemployment benefits — an indicator of the pace of layoffs — fell 18,000 to 3,24,000 in the week ended April 27, Labour Department figures showed on Thursday.
It was the lowest level since January 2008.