Crude slumps on stronger dollar, profit-taking

SINGAPORE: Crude prices fell in Asian trade Wednesday as traders took profit from an overnight rally and were scared off by a stronger dollar, analysts said.

New York's main contract, West Texas Intermediate (WTI) for delivery in November, slipped $1.25 to $83.20 a barrel.

Brent North Sea crude for November delivery shed 96 cents to $106.18.

Crude markets were taking a breather from big gains in US trade late Tuesday as the greenback strengthened, said Nick Trevethan, senior commodities strategist for ANZ Research in Singapore.

"Markets have seen some very big gains overnight... Take that with the slightly stronger dollar and it's hardly surprising prices are down," he told.

Crude prices had rocketed in the United States on Tuesday, with WTI soaring $4.21 or 5.25 percent to close at $84.45 a barrel on traders' hopes that European governments would be able to contain a festering regional debt crisis.

The euro was trading lower against the greenback in early Asian trade Wednesday, changing hands at $1.3585 compared to $1.3590 in late US trade on Tuesday.

A stronger US unit would deter traders using other currencies from buying dollar-priced crude as it would be more expensive for them. (AFP)