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Oil prices go down

01 July 2009 09:07 (UTC +04:00)

Bakuâ€“ APA-Economics. Oil rose above $70 a barrel after an industry report showed the biggest decline in crude inventories since September in the U.S., the worldâ€™s biggest consumer, Bloomberg reported.
Oil reversed some of yesterdayâ€™s 2.2 percent loss after the industry-funded American Petroleum Institute said crude supplies fell 6.8 million barrels to 349.7 million last week. A U.S. Energy Department report today will probably show crude-oil stockpiles declined 2 million barrels, according to the median of 15 estimates in a Bloomberg News survey.
Oil for August delivery gained as much as 86 cents, or 1.2 percent, to $70.75 a barrel on the New York Mercantile Exchange, and was at $70.48 at 1:02 p.m. Singapore time. Oil dropped $1.60 from an eight-month high yesterday after a decline in June U.S. consumer confidence.

Oil in New York posted a 41 percent quarterly gain, the biggest since 1990. Prices have rallied as rebounding world equity markets and a weaker dollar encouraged investors to buy the commodity as an alternative investment.
The U.S. currency traded at $1.4029 versus the euro at 11:06 a.m. in Tokyo, following a 0.4 percent gain yesterday.
Brent crude oil for August settlement rose as much as 90 cents, or 1.3 percent, to $70.20 a barrel on Londonâ€™s ICE Futures Europe exchange. It was at $70.01 a barrel at 1:04 p.m. Singapore time.
Chinaâ€™s manufacturing expanded for a fourth month as government stimulus spending and record bank lending sparked a recovery in the worldâ€™s third-biggest economy.