Singapore: Oil fell Wednesday for the first day in five as a rally that powered prices to three-month highs near $83 a day earlier lost steam, while industry data showed US gasoline stockpiles rose unexpectedly last week.
The dollar hovered near a three-month trough against the euro following Tuesday's data showing US consumer spending and incomes were flat in June and the index for pending sales of previously owned homes fell to a record low.
US crude for September fell as much as 53 cents to $82.02 a barrel and was down 32 cents at $82.23 by 0648 GMT yesterday, after touching $82.64 on Tuesday, the highest intraday price for a front-month contract since May 5. On Monday it topped $80 for the first time in three months.
"The market is taking a breath," said Clarence Chu, an energy trader at Hudson Capital Energy. "I can't rule out that it will rally again."
Front-month ICE Brent shed just 13 cents to $82.55.
"For the last couple of days it has been all dollar-driven," Chu said. "All the data indicates the US recovery is slowing down."
China's economy will cool further in the third quarter as fiscal stimulus starts to fade and the restocking cycle draws to a close, a government think tank said yesterday.
