Oil Prices Fall Following Rally

LONDON : Oil prices fell Thursday on profit-taking, a day after rising sharply as official data revealed strengthening energy demand in the United States, the world’s biggest consumer, traders said.

Brent North Sea crude for delivery in February dropped 37 cents to 73.92 dollars a barrel in early London trading. The January contract had expired on Wednesday, priced at 73.55 dollars.

New York’s main futures contract, light sweet crude for delivery in January, slid 40 cents to 72.26 dollars a barrel on Thursday.

Oil prices had soared by 1.50 dollars on Wednesday following the latest snapshot of US energy inventories.

The US Department of Energy (DoE) said distillate stockpiles sank by a heavier-than-expected 2.9 million barrels last week, indicating a pick-up in heating fuel demand.

Data for distillates, which include heating oil, are being closely tracked amid the start of the northern hemisphere winter.

Tags: Oil Prices