SINGAPORE (Commodity Online) : World oil prices extended overnight losses in Asian trade Wednesday as the dollar moved up amid weak market trends.
Light sweet crude for July delivery was seen trading at $72.04 a barrel at 11.30 a.m Singapore time while Brent crude was at $72.27 a barrel in London.
Analysts said after the long holiday weekend, the market was focused on economic storm clouds in the Euro zone and China.
The greenback hovered near a four-year high against the euro hit the previous day, and was up a third of a percent against a basket of currencies.
The European Central Bank warned on Tuesday that the region's banks may face a new wave of losses, with additional dollar strength coming from stronger-than-expected U.S. construction and manufacturing data.
On Tuesday, oil prices slid after a series of sluggish European and Chinese economic indicators sparked concerns about energy demand.
July contract dropped $1.39 to settle at $72.58 per barrel while Brent crude dropped $1.94 to settle at $72.71 a barrel.
American Petroleum Institute will issue its report a day late on Wednesday and the U.S. Energy Information Administration will publish its weekly report on Thursday.