Oil Drops From Two-Week High as Investors Seek Profit After Gain
Oil slid from the highest close in two weeks in New York as investors sought to profit from crude’s 5.8 percent advance in two days.
Futures slipped as much as 0.5 percent after climbing 0.9 percent yesterday. Prices are declining in New York as they approach technical resistance at $92.75 a barrel, according to data compiled by Bloomberg. U.S. crude stockpiles probably fell by 1.6 million barrels last week, according to a Bloomberg News survey of nine analysts before an Energy Department report tomorrow. Tropical storm Ernesto was forecast to become a hurricane as it heads for Mexico’s Bay of Campeche.
“If you come up to the topside then naturally you’re going to see people take profit,” said Jonathan Barratt, the chief executive officer of Barratt’s Bulletin, a commodity-markets newsletter in Sydney, who predicts West Texas Intermediate oil faces technical resistance at $92.50 a barrel.