Crude Oil Falls From Two-Week High in New York on U.S. Supply Forecasts - Bloomberg

Oil fell from its highest in almost two weeks in New York on speculation that crude stockpiles are increasing in the U.S., the biggest consumer of the commodity.

Futures reversed earlier gains as the dollar strengthened, diminishing the appeal for assets used to protect against inflation, such as crude. An Energy Department report tomorrow may show U.S. crude inventories climbed 875,000 barrels last week. The industry-funded American Petroleum Institute will release its own data later today.

“I don’t see a lasting rally, given the ongoing risks for the world economy,” said Carsten Fritsch, an analyst at Commerzbank AG in Frankfurt. The bank was the third most- accurate forecaster of oil prices in the second quarter. “It’s only soft factors like rising stock markets and returning risk appetite that’s supporting prices.”

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