Crude little changed as investors lock in profits

New York: Oil prices were little changed yesterday as investors locked in profits from a the previous session's rally in which crude hit a new record of nearly $124 per barrel.

Light, sweet crude for June delivery fell 12 cents to $123.41 a barrel on the New York Mercantile Exchange, alternating between gains and losses.

The contract rose $1.69 on Wednesday to a record finish of $123.53 a barrel, ignoring a weekly US government report showing an increase in US crude and gasoline stocks. The contract later jumped to a trading record of $123.93 a barrel in the electronic session, ahead of yesterday's open on the Nymex.

Analysts said there was little in the way of news driving Thursday's oil moves. Investors occasionally sell a little during rallies to lock in profits, said Fadel Gheit, an analyst at Oppenheimer & Co in New York. But bullish momentum - and expectations that the dollar will continue to weaken against foreign currencies including the euro - are likely to keep pushing oil to new records, he said.

Goldman Sachs analysts recently predicted prices will rise as high as $150 to $200 a barrel within two years. That forecast has driven much of oil's gains in recent days.

Analysts at Goldman and firms such as Barclays Capital believe tight global supplies and growing demand from fast-growing economies in countries such as China and India are driving oil higher. But Gheit and analysts including Tim Evans at Citi Futures Perspective argue that supply and demand fundamentals do not support such high prices.

"There is no reason why oil prices should be above $60," Gheit said.

Currency: Dollar down

The US dollar was mostly down against other major currencies in European trading Thursday. The euro traded at $1.5425, up from $1.5401 late Wednesday in New York.

The British pound was quoted at $1.9577, up from $1.9531.

Silver traded in London at $16.87, up from $16.05.

- AP