Oil prices fall as traders, investors take profits

Oil prices fall as traders, investors take profits

PanARMENIAN.Net - Oil prices fell Friday, Nov 30, after traders who believe crude prices may be too high unloaded their investments to lock in gains, The Associated Press reported.

Benchmark crude for January delivery was down 19 cents to $87.88 per barrel at late afternoon Bangkok time in electronic trading on the New York Mercantile Exchange. The contract rose $1.58 to close at $88.07 on the Nymex on Thursday.

"Some traders and investors in the market fear that the gains (in prices) over the last few days have been excessive, given the weak fundamentals in oil markets," said Victor Shum, energy analyst at consultancy Purvin & Gertz in Singapore. "It's really profit-taking."

Oil demand is not expected to spark dramatically in the coming months as the world's major energy consuming economies struggle to maintain growth. Ample crude supplies will also likely keep prices in check.

There was no progress Thursday in closely watched budget talks in Washington. U.S. lawmakers are trying to hammer out a deal to avoid a series of automatic tax increases and spending cuts that could drag the U.S. economy into recession if they go into effect.

Markets have been volatile ahead of the Jan. 1 deadline for an agreement to be reached to avoid the so-called fiscal cliff.

In other trading, Brent crude, which is used to price international varieties of oil, fell 21 cents to $110.55 per barrel on the ICE Futures Exchange in London.

 Top stories
“The European Union expects that this substantial assistance will lead to bold reforms over the next years,” Hristea said.
Over the 9 months of 2014, Ameribank's assets amounted to AMD 334 billion, taking it to the top of Armenia's banking system.
Sergo Karapetyan stated that exports of Armenian fruits (except fort apricots) and vegetables to Russia this year have doubled.
Among CIS countries, Azerbaijan was placed 60th, Russia 91st, Moldova 75th, Ukraine 88th, Kyrgyzstan 101st place.
Partner news