WTI closes below $70 per barrel in New York

Crude oil prices fell below $70 per barrel in New York Tuesday after going higher earlier on numbers showing that imports of crude into China were up 42 percent in July.

Prices fell, however, after the Commerce Department reported that wholesale inventories in the United States dropped by 1.7 percent in June, much more than expected, casting doubt on how real the economic recovery is.

September contracts for West Texas Intermediate crude were down $1.16 to $69.45 per barrel around the end of the floor trade session on the New York Mercantile Exchange, while at last report Brent crude had dropped $1 to $72.50 per barrel on the ICE Futures Europe exchange in London.

A survey of analysts showed that most expected crude oil inventories to be up slightly when the US Energy Information Administration reports last week’s stockpile levels on Wednesday, but gasoline and distillates inventories are expected to be lower.

Many analysts continue to insist that the fundamentals of supply and demand do not support recent price gains for crude oil.