Oil prices hovered below $83 a barrel Friday in Asia as a global stock rally stumbled and the U.S. dollar stabilized.
Benchmark oil for November delivery was up 1 cent at $82.70 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract lost 32 cents to settle at $82.69 on Thursday.
Oil prices broke above $80 last month as crude traders took their cues from surging stock markets and a weakening dollar, which makes dollar-based commodities such as oil cheaper for investors with foreign currencies.
However, the Dow Jones industrial average was flat Thursday and Asian stock markets were mostly lower. The euro was slightly higher at $1.4040 from $1.4038 the previous day while the dollar dropped to 81.28 yen from 81.56 yen.
Organization of the Petroleum Exporting Countries, which produce about 40 percent of the world’s crude, said at a meeting on Thursday in Vienna that it would leave crude production targets unchanged.
Some analysts expect the sluggish economic recovery in developed countries will undermine consumer demand and keep oil trading from breaching the mid-$80s.
“With oil production to remain the same and the global economy hanging on, I see the price of oil staying between the range of $85 and $75 for the near future,” said Mike Sander of Sander Capital Advisors.
In other Nymex trading in November contracts, heating oil fell 0.27 cent to $2.281 a gallon and gasoline was steady at $2.138 a gallon. Natural gas held at $3.661 per 1,000 cubic feet.
In London, Brent crude dropped 7 cents to $84.13 a barrel on the ICE Futures exchange.