Crude prices fall on profit taking

21st October 2010, Comments 0 comments

World oil prices fell on Thursday as traders took profits from a rally the day before, analysts said.

New York's main contract, light sweet crude for delivery in December, slipped 27 cents to 82.27 dollars a barrel.

Brent North Sea crude for December delivery dipped two cents to 83.58 dollars a barrel in midday London trade.

"It could likely be profit-taking today," said ANZ bank analyst Serene Lim.

Crude markets had jumped on Wednesday thanks to a weaker dollar and a lower-than-expected rise in US crude inventories.

The US Department of Energy reported that crude stockpiles rose slightly last week while distillates showed a bigger-than-expected drop.

Crude oil stockpiles rose by 700,000 barrels from the previous week to 361.2 million barrels for the week ended October 15, less than expected by most analysts, while distillate fuel inventories decreased by 2.2 million barrels.

It has been a volatile week for crude futures, with them plunging on Tuesday in reaction to China's surprise interest rate hike.

© 2010 AFP

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