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Oil prices slide on markets

28 July 2009 07:47 (UTC +04:00)

Bakuâ€“ APA-Economics. Crude oil fell in New York for the first time in four days as investors sold futures to lock in gains on concern prices have climbed too far amid expectations of a drop in demand, Bloomberg reported.

Prices rallied yesterday to a 3-week high, as equity markets climbed in the U.S. and Asia, signaling a potential economic recovery. Investors who have made bets, that oil will rise, or so-called long positions, sell their contracts to make profits. Crude demand for 2009 is forecast to drop 2.9 percent, the International Energy Agency said July 10.

Crude oil for September delivery declined as much as 48 cents, or 0.7 percent, to $67.90 a barrel in electronic trading on the New York Mercantile Exchange. It was at $68.19 a barrel at 11:31 a.m. Singapore time. Prices have gained 14 percent in the past two weeks.

Brent is trading at a $2.44 a barrel premium to the West Texas oil contract in New York, the most since April 13.
Brent crude oil for September settlement fell as much as 42 cents, or 0.6 percent, to $70.39 a barrel on Londonâ€™s ICE Futures Europe exchange. It was at $70.68 a barrel at 11:32 a.m. Singapore time. Yesterday, it rose 49 cents, or 0.7 percent, to $70.81 a barrel.
U.S. oil supplies probably fell 1.6 million barrels last week from 342.7 million, according to the median of seven estimates by analysts before an Energy Department report tomorrow. Four of those surveyed said supplies dropped, and three forecast an increase.
Gasoline inventories probably declined 650,000 barrels from 215.4 million, according to the median forecast in the survey.
Gasoline for August delivery fell 0.22 cent, or 0.1 percent, to $1.9325 a gallon on the Nymex at 10:50 a.m. Singapore time. Yesterday, it rose 1.88 cents, or 1 percent, to $1.9347 a gallon.
Supplies of distillate fuel, a category that includes heating oil and diesel, probably rose 1 million barrels from 160.5 million. Six out of the seven respondents forecast a gain.
The Energy Department is scheduled to release its weekly report at 10:30 a.m. July 29 in Washington.