Crude oil prices fall for fifth day

24 August 2010

Written by Neil Brunskill

Crude oil prices were lower for a fifth consecutive session this morning (August 24th), registering losses in excess of one per cent.

By 02:44 Central Standard Time, the October-delivery crude contract was trading at $72.21 a barrel, down 89 cents on yesterday's closing price.

Heating oil futures were also lower, trading 1.59 cents down at $1.9395 a gallon.

Pressure came as the US approaches the end of the summer driving season, which has this year failed to lead to an increase in gasoline demand.

Speaking to Reuters, Tony Nunan, a risk manager at Tokyo-based Mitsubishi Corp, commented: "US gasoline inventories have gone sideways during the peak driving season, when we should get a draw. We are pretty close to $72, which is support, but if we break through that we'll go to the $60s."

Later today the American Petroleum Institute will release its latest weekly petroleum inventory figures, followed by a more extensive report from the Energy Information Administration tomorrow.

Analysts anticipate that both will show signs of further weakness in the gasoline market.

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