Oil Prices Flat In Asian Trade

SINGAPORE: World oil prices were flat in Asian trade on Monday after concerns over a Gulf of Mexico storm eased, dealers said.

New York's main futures contract, light sweet crude for delivery in November, was six cents lower at $81.60 a barrel in late morning trade.

The contract reached $81.66 in late United States trades on Friday.

Brent North Sea crude for November delivery was off three cents at 79.20 after it rocketed above $81 a barrel for the first time in London on Friday, owing to concerns over stretched global energy supplies.

Prices had begun surging on Thursday as traders watched a new storm in the Gulf of Mexico.

Hurricane Lorenzo barrelled ashore from the Gulf of Mexico but rapidly lost its punch. Three people were reported killed in Mexico.

"I guess with the storm out of the way you would expect the tension to come out of the market," said Jason Feer, Asia-Pacific vice president of energy market specialists Argus Media in Singapore.

The Gulf of Mexico is a leading oil-producing region for the United States and Mexico. Investors worry about storm damage to oil rigs and other infrastructure during the long Atlantic hurricane season that ends in November.

New York crude oil prices broke the $80 barrier for the first time on September 12 as the market fretted over declining US reserves and a tropical storm in the Gulf.