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The price of oil fell last Friday as traders took profits from near-record prices and as worries lingered over a slowdown in the United States economy.
US crude settled down US$1.22 to US$81.66 a barrel after gaining US$2.58, or 3.24 per cent, in the previous session. London Brent crude fell US86c to US$79.17 a barrel.
"The market just ran out of momentum here and there's been some profit-taking as there was no hard news to drive the market to new highs," said Phil Flynn, analyst at Alaron Trading in Chicago.
A more than 30 per cent rally in oil prices this year pushed US crude to a record US$83.90 last week when analysts anticipated tightening global stockpiles.
The surging price of oil has renewed fears that energy costs, combined with a credit crunch and a US housing slowdown, could drag heavily on economic growth.
Global stock markets were also lower on Friday, hurt by the near-record oil prices and concerns about health of consumer spending and business investment.
Losses were limited by the weak US dollar, which tends to strengthen the nominal values of goods traded in the currency.
Continued expectations of tightening supply heading into the northern winter heating season and the threat of supply disruptions due to hurricanes also kept a floor under prices.
- Reuters
