Crude oil retreats from seven-month highs

3 June 2009

Crude oil prices retreated from seven-month highs on Tuesday, bringing an end to a week-long run of successive price increases.

US crude for July delivery dropped slightly to settle at $68.55 (£41.20) a barrel, down three cents on the previous day, while London Brent crude climbed 20 cents to settle at $68.17.

Values have been boosted by a series of positive economic data over the past week and there were further signs of optimism as a report showed a 6.7 per cent increase in US pending home sales during April.

The dollar also fell to a new 2009 low against the euro, offering further support for crude oil, but prices fell slightly as profit-taking outweighed hopes that the recession could soon be over.

Phil Flynn of Alaron Trading told Reuters: "I think basically we've been up seven days in a row and we're seeing a little profit-taking just because of altitude."

Despite the let-up in price increases, home heating oil customers may wish to purchase their fuel supplies sooner rather than later after oil giant Shell warned this week that crude values could spike again in the future as a result of low energy investment.

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