AFP quoted analysts as saying that oil was lower in Asian trade after a strong overnight rally on the back of positive US data and a weak dollar.

As per report, New York's main contract, light sweet crude for January delivery fell 50 cents to USD 77.76 dollars per barrel. Brent North Sea crude for January delivery dropped 47 cents to USD 77.97. Prices surged overnight as fresh US data showed jobless claims fell in the week ending November 21st 2009 to an adjusted 466,000, the lowest since September 2008.

A separate report showed consumer spending rose more than expected in October and a third said sales of new homes rose at their strongest pace since September 2008.

Mr Andy Lipow analyst at Lipow Oil Associates said that "The overwhelming sentiment was based on the economic news."

Analysts said that crude prices probably eased off in morning Asian trade as investor’s switched focus to digest the weekly oil data from the US Department of Energy.

Mr Jason Feer Singapore based regional VP for energy analysts Argus Media said that "The inventory numbers were uninspiring so there was not anything to drive the market higher. Demand fundamentals are still fairly weak."

The DoE said in its weekly report that crude stocks rose by 1 million barrels in the week ended November 20th 2009 and gasoline reserves were up by the same amount. Meanwhile, OPEC member Algeria said that the oil cartel was likely to maintain its production levels when the organization meets next month in Angola.

Mr Chakib Khelil energy minister of Algeria said that "We are going to keep the same output level until we have a clearer vision of the world economic situation."

(Sourced from AFP)