Crude prices resume declines on data

Crude oil prices were lower Friday after new data from the Commerce Department which showed that US retail sales were down 1.2 percent in May.

The declines came despite a new Reuters/ University of Michigan survey showing that consumer confidence is up this month and even though the International Energy Agency raised its estimate of demand growth for crude oil this year by 60,000 barrels per day from its previous prediction.

Helping to push prices down was new data showing that consumer price inflation is at a nineteen-month high in China, which raised concerns that the government there will take further steps to rein in the economy, which could hurt demand for oil.

Also hurting prices was a report that said factory output in China did not increase as much as anticipated in China.

July contracts for West Texas Intermediate crude were down $2.11 to $73.37 per barrel in afternoon trade on the New York Mercantile Exchange, while at last report Brent crude had dropped $1.56 to $73.73 per barrel on the ICE Futures Europe exchange in London.

Nymex July gasoline futures were down 4 cents to $2.03 per gallon while July heating oil futures also dropped 4 cents, to $1.99 per gallon, but July natural gas futures added 9 cents to $4.73 per million British thermal units.

The retail price of a gallon of regular unleaded gasoline in the United States fell slightly again overnight, to $2.704 per gallon on average nationally.