Oil prices eased on Monday after OPEC pledged to keep pumping at almost full tilt even though U.S. crude stockpiles are at their highest level in nearly six years, Reuters reported. Strength in the dollar, which jumped to a seven-month peak against the euro and a one-month high against the yen on Monday, also weighed on prices. U.S. crude oil prices lost 42 cents to $48.25 a barrel after falling to a new three-month low of $47.60. Prices have fallen around 17 percent from the record high at $58.28 struck in early April. Brent crude oil fell 71 cents to $47.95 a barrel. Higher OPEC supplies have helped push U.S. crude stocks to their highest level since July 1999. Gains in the dollar have also tempted some investment funds to switch back out of commodity markets and into treasuries. A stronger U.S. currency makes dollar-denominated oil more expensive for buyers in non-dollar economies. "It appears many players were forced to close their short-dollar, long-crude positions," said Washington D.C.-based analysts PFC Energy in a research note. --More 2304 Local Time 2004 GMT
