SINGAPORE (Commodity Online) : World oil prices followed gold towards south in Asian trade Tuesday after hitting a 19-month high on positive economic news overnight.
The black gold dropped below $86 a barrel mark mainly on a strong dollar against major currencies amid rise in US crude and fuel stockpiles.
Light sweet crude for June was seen trading at $85.81 a barrel at 11.30 a.m Singapore time while Brent crude was at $88.61 a barrel at the same time in London.
The dollar hovered near 8-1/2-month highs against the yen and one-year peaks versus the euro, boosted by robust data that backed views the Federal Reserve will be ahead of its counterparts in Europe and Japan in raising interest rates later this year.
On Monday, June delivery settled up four cents at $86.19 a barrel after hitting as high as $87.15, the highest level since October 2008.
Brent North Sea crude for June delivery climbed 54 cents to $87.44 a barrel, after reaching $89.58.
Earlier on the day, New York markets soaring to their highest levels in 19 months amid concerns about a slick in the Gulf of Mexico and positive US indicators.