LONDON, Dec 11: Oil prices edged lower on Thursday on a combination of technical factors, a rebound by the dollar and forecasts of warmer weather in the United States, traders said.

The price of Brent North Sea crude oil for January delivery lost 21 cents a barrel to $29.45 in London. New York’s reference light sweet crude January contract sagged 20 cents to $31.68 per barrel.

“The market is very technical and focusing on the very short term,” said Vincent Gaudier, a trader with Rothschild bank.

One possible explanation for the weakness was a mini-recovery by the dollar, he said. The US unit broke a run of nine consecutive days of record lows against the euro on Wednesday.

Ministers from the Opec cartel argued at their meeting last week that higher oil prices were acceptable because of a depreciation of the US currency.

So any signs that the fall of the dollar was stopping could weigh on oil prices, Gaudier said.—AFP