oil prices dropped again in Asian trade june 7 2011

oil prices dropped again in Asian trade june 7 2011 : Global oil prices dropped again in Asian trade Tuesday, mainly on concerns that oil cartel OPEC may increase oil output. Light sweet crude for July delivery was seen trading at $98.56 a barrel at 12.00 noon Singapore time while Brent crude was at $114.07 a barrel in London.

Analysts said the black gold was also hit by weak lower demand after US economy showed less progress than expected. OPEC is likely to increase output quota when it meets at Vienna Wednesday to check spiraling prices.

Traders and investors are also watching for the US Energy Department report, scheduled for Wednesday.

The department last month cut its forecast for global oil consumption for 2011 this year to 88.08 million barrels a day from 88.2 million estimated in April.

The difference between front-month contracts in London and New York reached a record $19.54 on Feb. 21. It averaged 76 cents last year. On Monday, oil prices fell amid worries about a faltering global economic recovery and speculation that the OPEC may raise supply.

New York's main contract, WTI light sweet crude for delivery in July, finished the trading session at $99.01 a barrel, a loss of $1.21 from Friday's closing level.

In London, Brent North Sea crude for July delivery shed $1.36 to settle at $114.48 a barrel. For the latest updates PRESS CTR + D or visit Stock Market news Today

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