Crude falls on profit-taking before inventories

Crude oil prices fell on Tuesday, with the declines coming on profit-taking after Monday’s new record prices. Prices had been expected to keep rising on Tuesday but there were no new developments concerning events and issues that had caused Monday’s price spike.

There was also a feeling among some investors and analysts that it was a good time to take profits before the release of US inventory figures on Wednesday. Stockpiles of gasoline are expected to be down as summer demand continues and as refinery shutdowns continue to take their toll.

Meanwhile, US consulates and the embassy in Saudi Arabia were still closed due to fears of terrorist attacks there, and there were no new developments in the stand-off between the US and Europe and Iran over Iran’s insistence on recommencing its nuclear program.

West Texas Intermediate crude for September delivery had lost 87 cents near the close of trade to $63.07 per barrel, falling form a new high of $64.27 reached earlier in the day. September contracts for Brent crude on the International Petroleum Exchange were down 72 cents to $61.98 per barrel after hitting a new high of $63.06.