Oil fell in New York as traders sold contracts to lock in gains ahead of the U.S. Thanksgiving holiday and after the U.S. Energy Department said crude inventories held by the world’s largest energy consumer rose. Oil also pulled back after rallying 2.6 percent yesterday, the most since Nov. 16, as the dollar retraced some of its losses against the euro. Commercially held U.S. stockpiles rose to a four week high of 337.8 million barrels in the week to Nov. 20, renewing concern over the pace of recovery in fuel demand.
“We can expect some profit taking selling after last night’s sharp gains led by gold and the euro,” said Ken Hasegawa, a commodity derivatives sales manager at Newedge in Tokyo. “It’s possible to go as low as $76.50, that’s the level before it started rising yesterday.”
Crude oil for January delivery fell as much as 56 cents, or 0.7 percent, to $77.40 a barrel in electronic trading on the New York Mercantile Exchange. The contract was at $77.55 a barrel at 11:20 a.m. Singapore time. Yesterday, it rose $1.94 to $77.96 a barrel. Futures have gained 74 percent this year. Floor trading in New York will be suspended today because of Thanksgiving. The exchange will close early tomorrow, while electronic trading will continue through the holiday.....Read the entire article.
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