Crude prices were on the decline Friday as investors took a breather on concerns that speculation pushing oil to an 11-week high was too ambitious. Positive earnings news in the US and demand in China has seen oil gain nearly 4 percent this week alone.
“We are now at the upper end of the trading range and should come off, unless something unexpected happens,†said Carsten Fritsch, a Commerzbank AG analyst in Frankfurt. “Fundamentals still look pretty poor and don’t justify prices close to $80.â€
Crude for September delivery dropped as much as 51 cents, or 0.6 percent, to $78.79 a barrel, in electronic trading on the New York Mercantile Exchange. It was at $78.85 at 1:04 p.m. in London. Yesterday, the contract rose as high as $79.42, the highest price since May 5, as stock markets advanced.
Source: Bloomberg
