SINGAPORE (Commodity Online) : World oil prices continued its southern journey and dropped below $74 in Asian trade Friday mainly on demand concerns linked to European debt crisis.
Light sweet crude for June delivery was seen trading at $ 73.75 a barrel at 11.30 a.m Singapore time while Brent crude was at $ 79.77 a barrel in London.
Analysts said the black gold was also hit by a stronger dollar that reduced the purchasing power of other currency holders for oil and also on rising stockpiles in the United States.
High crude stockpiles at the Cushing, Oklahoma pricing point for Americas benchmark West Texas Intermediate are exercising pressure on contracts closest to delivery, creating the sharpest contango market structure in 15 months.
However, analysts say European benchmark ICE Brent was poised to end the week higher, despite an early dip, Friday, when the June contract expires.
On Thursday, New York's main contract, light sweet crude for June delivery, dropped $1.25 to $74.40 a barrel after falling as low as $73.62, its lowest level in three months.
London's Brent North Sea crude for June shed $1.09 to settle at $80.11. June contract expires Friday.