Oil Drops on Equity Decline as US Inventory Gains

28 July 2009 (Last Updated July 28th, 2009 18:30)

The price of crude oil dropped for a second day after equities fell and an industry report showed a rise in crude supplies in the US, Bloomberg reported. Crude oil for September 2009 delivery declined as much as $0.62, or 0.9%, to $66.61 a barrel on the New York Mercantile Exchang

The price of crude oil dropped for a second day after equities fell and an industry report showed a rise in crude supplies in the US, Bloomberg reported.

Crude oil for September 2009 delivery declined as much as $0.62, or 0.9%, to $66.61 a barrel on the New York Mercantile Exchange, and traded at $66.73 at 10.30am Singapore time.

On 28 July, futures fell $1.15, or 1.7%, to settle at $67.23 a barrel.

Oil extended losses due to Asian and US stocks dropping after a measure of consumer confidence trailed projections. The American Petroleum Institute (API) reported that crude inventories rose the previous week.

According to API, US crude-oil inventories increased 4.07 million barrels to 352.4 million last week. Gasoline inventories were little changed at 213.6 million barrels.

A US Energy Department report is expected to show that crude-oil inventories dropped 1.6 million barrels last week, according to a Bloomberg News survey.

Brent crude oil for September 2009 settlement dropped as much as $0.46, or 0.7%, to $69.42 a barrel, and traded at $69.77 at 10.40am Singapore time. On 28 July it dropped $0.93, or 1.3%, to end yesterday’s session at $69.88 a barrel on London’s ICE Futures Europe exchange.