WTI drops in late trade

Crude oil prices fell late on the session on Friday, with November contracts for West Texas Intermediate crude down $1.26 at the close of floor trade on the New York Mercantile Exchange to $81.62 per barrel after rising to as high as $83.76 per barrel, less than a dollar below the inflation-adjusted all-time high.

The early gains came on a government report that US consumer spending was up in August, but prices declined on news that refiners margins have dropped to $6.59 per barrel, their lowest in nearly a year.

Investors were also concerned about Tropical Storm Karen, which was not expected to reach hurricane status but is nonetheless likely to take a path into the Gulf of Mexico next week.

Nymex November gasoline dropped 1 cent to $2.07 per gallon, while November heating oil was down 5 cents to $2.22 per gallon and November natural gas fell 4 cents to $6.88 per million British thermal units.