Oil prices fall as speculators sell off
Friday, 10 August 2007
NEW YORK, Aug 9 (AFP): World oil prices finished lower yesterday in choppy trade, despite a larger than expected decline in US crude stocks, as speculators engaged in a bout of profit- taking, traders said.
Prices still remain relatively high, but have come under pressure amid concerns about US economic growth. The United States is the world's biggest oil consumer.
New York's main oil futures contract, light sweet crude for September delivery, closed down 27 cents at 72.15 dollars a barrel.
In London, the price of Brent North Sea crude for September delivery settled 81 cents lower at 70.99 dollars a barrel. Prices ended lower after the US Department of Energy reported in a weekly snapshot that crude inventories fell by 4.1 million barrels to 340.4 million barrels for the week ended August 3.
A week ago, New York oil prices had rocketed to a record high of 78.77 dollars a barrel, but they have since fallen markedly by over six dollars.
The inventory decline was much sharper than forecast. Most analysts were expecting stocks to drop by just 2.75 million barrels.
A decline in US gasoline stocks also caught the market off guard as the government report revealed a surprise 1,7 million barrel decline in stocks. Analysts had chalked up a rise of 775,000 barrels.
The report also showed that refinery output dipped to 91.3 per cent of capacity, compared with expectations it would remain at 93.6 per cent.
Oil prices have been volatile in the past week. Prices had moved higher Tuesday a day after plunging by over three dollars on concerns of weaker energy demand tied to fears about US economic growth.
Prices still remain relatively high, but have come under pressure amid concerns about US economic growth. The United States is the world's biggest oil consumer.
New York's main oil futures contract, light sweet crude for September delivery, closed down 27 cents at 72.15 dollars a barrel.
In London, the price of Brent North Sea crude for September delivery settled 81 cents lower at 70.99 dollars a barrel. Prices ended lower after the US Department of Energy reported in a weekly snapshot that crude inventories fell by 4.1 million barrels to 340.4 million barrels for the week ended August 3.
A week ago, New York oil prices had rocketed to a record high of 78.77 dollars a barrel, but they have since fallen markedly by over six dollars.
The inventory decline was much sharper than forecast. Most analysts were expecting stocks to drop by just 2.75 million barrels.
A decline in US gasoline stocks also caught the market off guard as the government report revealed a surprise 1,7 million barrel decline in stocks. Analysts had chalked up a rise of 775,000 barrels.
The report also showed that refinery output dipped to 91.3 per cent of capacity, compared with expectations it would remain at 93.6 per cent.
Oil prices have been volatile in the past week. Prices had moved higher Tuesday a day after plunging by over three dollars on concerns of weaker energy demand tied to fears about US economic growth.