Oil Prices Retreat
LONDON (AFP) – World oil prices dropped on Tuesday, with New York crude taking a hit from disappointing U.S. data, according to analysts.
Brent North Sea crude for delivery in September fell 29 cents to stand at $107.86 a barrel in London midday deals.
New York’s main contract, West Texas Intermediate (WTI) for delivery in September, slid one dollar to $105.94 a barrel.
“The price decline was triggered by weaker-than-expected existing home sales in the US,” said Kash Kamal, research analyst at Sucden brokerage in London. “Expectations for a further drawdown in [U.S.] crude stocks this week may support WTI near current levels.”
He added: “Brent remains relatively well supported at current levels as tensions in the Middle East continue to threaten supply, however prices have experienced some downside as concerns over slowing Chinese growth materialised.”
The National Association of Realtors on Monday said that US home sales fell 1.2 percent to an annual rate of 5.08 million in June. The average analyst estimate was for a rise to 5.28 million in June.