Oil prices fell towards $72 a barrel today, as a fall in Asian equities markets weighed on sentiments and encouraged investors to take profit.
Still, crude prices are on track to gain about 4 per cent this week, helped by a US government report that showed a larger-than-expected drawdown in crude stocks and rallying stock markets, which was supported by a string of positive economic data.
US crude for October delivery fell 40 cents to $72.07 a barrel after settling down 4 cents yesterday, when prices slipped as Wall Street closed down after a three-day run-up. on concern recent gains were overextended.
London Brent crude fell 30 cents to $71.28.
Oil has tracked equities markets closely in recent months as dealers look to stocks as a leading indicator of an economic recovery that could boost ailing energy demand.
Concerns about growing oil supplies from the Organization of Petroleum Exporting Countries (OPEC), also weighed on sentiments.
OPEC seaborne oil exports, excluding Angola and Ecuador, will rise 200,000 barrels per day (bpd) in the four weeks to October 3rd, an analyst who tracks future shipments said yesterday.
Still, some analysts said the recent string of positive economic data would keep oil prices supported, as data around the world have strengthened the view that a global economic recovery was underway and that energy demand would soon recover.
Economic data yesterday showed US weekly jobless benefit claims fell unexpectedly last week while US housing starts rose to their highest level since November, providing further encouraging signs of an economic recovery.
Reuters