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Oil prices drop from $70

01 October 2009 11:50 (UTC +04:00)

Bakuâ€“ APA-Economics. Crude oil in New York fell as traders booked profits from yesterdayâ€™s rally on concern the pace of fuel demand recovery in the U.S., the biggest energy-consuming nation, may stall, Bloomberg reported.
Oil slipped below $70 a barrel after an unexpected drop in U.S. business activity and as companies cut more jobs than estimated. Prices rallied 5.9 percent yesterday, the most since April 2, after the Energy Department posted a surprise drawdown in gasoline stockpiles.
Crude oil for November delivery fell as much as 72 cents, or 1 percent, to $69.89 a barrel in electronic trading on the New York Mercantile Exchange. The contract traded at $70.02 a barrel at 12:25 p.m. in Singapore. Futures have gained 57 percent this year.
The Institute for Supply Management-Chicago Inc.â€™s business barometer slid to 46.1, trailing the most pessimistic estimate from economists. Companies in the U.S. cut September payrolls by a larger-than-forecast 254,000 jobs, a report from ADP Employer Services showed, indicating the labor market may be slow to recover.
Brent crude oil for November settlement fell as much as 64 cents, or 0.9 percent, to $68.43 a barrel on the London-based ICE Futures Europe exchange. The contract traded at $68.51 a barrel at 12:25 p.m. Singapore time. Yesterday, it rose 5.5 percent, the steepest increase since Sept. 16, to settle at $69.07 a barrel.