Oil falls on rising crude inventories

• Source: Xinhua
• [08:47 August 27 2009]
• Comments

Oil prices dropped for a second session on Wednesday as investors weighed ample inventories against upbeat housing data.

Light, sweet crude for October delivery dropped 62 cents to settle at $71.43 a barrel on the New York Mercantile Exchange.

According to the US Energy Department's Energy Information Administration (EIA), crude stockpiles increases by 0.2 million barrels during the week ending August 21, against analysts' prediction for a drop. At 343.8 million barrels, US crude oil inventories are above the upper boundary of the average range for this time of year.

Oil's losses were tempered by the news that sales of new homes surged 9.6 percent in July, better than expected and again showing the housing market was climbing back from its bottom.

In London, Brent Crude for October delivery fell 24 cents to 71.58 dollars a barrel on the ICE Futures exchange.