Oil prices retreat to US$77

24-Jun-10

Crude oil futures for July delivery have fallen to US$77.2 on uninspiring data released by a report on US existing home sales, a rising dollar, and news of an increase in US commercial crude oil inventories. The National Association of Realtors has reported that existing home sales fell to an annual rate of 5.66 mln in May from 5.79 mln in April vs expectation of a rise to an annual rate of 6.1 mln homes. The US dollar is getting stronger vs the euro and the pound, this makes commodities, including oil, that are priced in dollars, more expensive. Commercial crude oil inventories in USA increased by 2 mln barrels in the week ending 18 June from the previous week, as per the EIA. At 365.1 million barrels, US crude oil inventories are above the upper limit of the average range for this time of year.