Oil prices dropped, set for the longest losing streak since December 2008, as equities fell and an industry report showed a rise in US fuel inventories, Bloomberg reported.

Crude oil for August 2009 delivery dropped as much as $0.94, or 1.5%, to $61.99 a barrel on the New York Mercantile Exchange, the lowest intraday price since 26 May. Oil was traded at $62.23 a barrel at 10.26am Singapore time.

Following a claim by the American Petroleum Institute that gasoline supplies rose 767,000 barrels to 212.4 million last week, oil dropped for a sixth day.

US stocks dropped on concerns that technology spending will slow and second-quarter earnings will fail to justify a four-month rally in equities.

Oil in New York has dropped 15% from an eight-month intraday high of $73.38 reached on 30 June as higher US unemployment increased concern that the economy of the country will be slow to recover.

The stocks in the Asian market dropped for a sixth day. The MSCI Asia-Pacific Index fell 1.3% to 100.48 at 10.32am Tokyo time. The Standard & Poor’s 500 Index dropped 2% on 7 July to the lowest level since 1 May. The Dow Jones Industrial Average lost 1.9%.

Excess gasoline

Gasoline for August 2009 delivery dropped as much as 2.53 cents, or 1.5%, to $1.7075 a gallon. On 7 July it dropped 0.76 cents, or 0.4%, to end the session at $1.7328.

Crude oil also dropped as the dollar advanced against the euro, decreasing the appeal of commodities as an inflation hedge. The euro traded at $1.3890 to the US currency at 10.10am Singapore time from $1.3924 on 7 July and $1.4142 on 1 July 2009.