Crude fell towards $69 a barrel today after extending the previous session’s drop of more than 2% as bearish sentiment over gasoline markets in the US continued to dominate investors’ concerns.
‘Crude fell 2.5% on Friday, dragged lower by a sell-off in the gasoline market as dealers bet there would ample fuel supply in the US to meet demand from summer vacationers. US crude for July delivery fell 39 cents to $69.16 by 0157 GMT. The contract fell $1.82 to settle at $69.55 a barrel on Friday, registering a weekly loss of more than 3%. London Brent crude fell 32 cents to $68.87. “In May, the market was pricing in that there would be a gasoline shortage but the latest data is obviously showing that it is not happening,” said Ben Westmore, a commodities analyst at the National Australia Bank. “There are also high stockpiles of crude, so the general market sentiment is that the balance of demand and supply in the market hasn’t improved too much”