SINGAPORE - Oil prices fell to near US$71 a barrel Thursday in Asia as investors eyed rising U.S. crude inventories and signs of a weak economy.
Benchmark crude for September delivery was down 41 cents to $71.56 a barrel by late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. On Wednesday, the contract gained 55 cents to settle at $71.97.
Crude has traded near $71 a barrel for the last couple days after shooting up from below $62 last week as investors try to gauge whether a weak U.S. economy justifies a further rally.
The U.S. Energy Department's Energy Information Administration on Wednesday said crude inventories increased by nearly two million barrels last week, adding to the five million barrels put into storage the previous week.
The Institute for Supply Management reported that the services sector contracted more sharply than expected in July. The ISM showed that retailers, financial services, transportation and health care sectors, which account for 80 per cent of U.S. economic activity, fell for a tenth straight month.
In other Nymex trading, gasoline for August delivery rose 0.31 cents to $2.054 a gallon and heating oil dropped 2.1 cents to $1.9548. Natural gas for August delivery rose 0.4 cents to $4.046 per 1,000 cubic feet.
In London, Brent prices fell 39 cents to $75.12 a barrel on the ICE Futures exchange.
