Crude prices down after US deficit forecast

Crude oil prices were lower in early afternoon trade Tuesday as investors took profits and after the Congressional Budget Office issued a report predicting that the United State will accumulate a deficit of $7 trillion over the next ten years.

Before the deficit forecast was released, prices were up as West Texas Intermediate crude rose to $75 per barrel on a new report on consumer confidence from the Conference Board, which said it’s index on consumer confidence was at 54.1 in August, more of an increase from July’s reading of 47.4 than had been expected.

October contracts for WTI were 66 cents lower to $73.71 per barrel in early afternoon trade on the New York Mercantile Exchange, while at last report Brent crude had dropped 99 cents to $73.27 per barrel on the ICE Futures Europe exchange in London.

Earlier, in morning trade, Nymex September gasoline futures were trading even at $2.05 per gallon while October heating oil futures had added 2 cents to $1.95 per gallon and October natural gas was 10 cents lower to $3.24 per million British thermal units.

Even though some data seem to indicate that the economy is beginning to recover from the recession, concerns remain about demand for oil and oil products as demand does not seem to be recovering much as the US summer driving season nears its end, and some analysts see declines in prices to come as autumn begins.