Oil prices: $55 a barrel

Oil prices fell for the third straight day on Wednesday, slipping below $53 a barrel after a rally that was sparked by a drop in supplies fizzled and brokers locked in profits from a recent runup.

Crude futures initially climbed as high as $55 a barrel on the New York Mercantile Exchange after the Energy Department released data showing that the nation's commercially available supply shrank by 3 million barrels last week. But the buying gradually dried up and &to=http:// english.pravda.ru/world/20/91/368/14250_Chavez.html ' target=_blank>oil prices headed south.

July light sweet crude fell $1.26 to $52.50 a barrel in late afternoon trading on Nymex, tells ABC News.

According to Bloomberg, crude oil for July traded at $52.45 a barrel, down 9 cents, in after-hours electronic trading on the New York Mercantile Exchange at 8:41 a.m. Singapore time. It traded at $52.40 earlier today, the lowest intraday price since June 1.

The contract yesterday fell $1.22 to $52.54, the biggest one- day decline since May 18. Futures initially surged to $55 after the report showed a 3.1 million-barrel drop in crude oil inventories. Prices today are up 40 percent from a year ago.

Oil futures surged to a five-week high last week on concern the nation's distillate stocks weren't rising fast enough to meet rising demand for trucking and jet fuel.

Subscribe to Pravda.Ru Telegram channel, Facebook, RSS!

Author`s name Editorial Team