Oil prices fell 3 percent in Asian trade on Tuesday, with investors covering short positions and taking profits after Brent and US crude soared more than 8 percent in the previous session.
Both Brent and US crude prices dropped nearly USD 2 a barrel shortly after trading in Brent started on Tuesday before recovering later in the session.
"A lot of the fall was due to short covering," said Ben Le Brun, market analyst at Sydney's OptionsXpress.
"There could be a bit of profit taking for people who have gone long," he added. The falls also indicated investors may have "gone overboard" in pushing up prices so fast, Le Brun said.
US crude, also known as West Texas Intermediate, climbed 27.5 percent by the end of the previous session after three days of gains, the largest three-day increase in dollar terms since February 2011 and the biggest percentage increase since August 1990.
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Both Brent and US crude prices dropped nearly USD 2 a barrel shortly after trading in Brent started on Tuesday before recovering later in the session.
"A lot of the fall was due to short covering," said Ben Le Brun, market analyst at Sydney's OptionsXpress.
"There could be a bit of profit taking for people who have gone long," he added. The falls also indicated investors may have "gone overboard" in pushing up prices so fast, Le Brun said.
US crude, also known as West Texas Intermediate, climbed 27.5 percent by the end of the previous session after three days of gains, the largest three-day increase in dollar terms since February 2011 and the biggest percentage increase since August 1990.
Marketmagnify provide tips and advices to our clients by sms/calls/chat. We have dedicated team of analysts and we are providing reliable and valuable tips on stock, commodities. We believe in our customer satisfaction by giving them successful results.We provide high accurate commodity market Tips at very reasonable price to help small traders and investors to make decent money. Fill OUR FREE TRIAL We cover all types of services all segment.
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