Oil retreats from $80

Investors eye supply data due Wednesday, as eight-day rally eases.

EMAIL  |   PRINT  |   SHARE  |   RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
By Julianne Pepitone, CNNMoney.com staff reporter

oil.jpg.mkw.gif
Click the chart to view other commodity prices.
At what level will the Dow Jones industrial average end 2009?
  • Above 11,000
  • Between 10,000 and 11,000
  • At 10,000
  • Below 10,000

NEW YORK (CNNMoney.com) -- Oil edged off a peak just above $80 a barrel on Tuesday as investors an eight-day rally cooled.

U.S. crude for November delivery fell down 52 cents and settled at $79.09 a barrel, after reaching $80.05 earlier in the session.

Oil has ended higher for the past eight days, but analysts have questioned whether the recent rally is justified as crude market fundamentals remain weak. Supply has climbed steadily in recent months, while demand remains unclear pending a broader economic recovery.

Additionally, investors were looking ahead to an inventory report from the Energy Information Administration on Wednesday. Research group Platts predicted crude supplies increased by 2.2 million barrels last week.

Stocks tumbled in midday trading after DuPont (DD, Fortune 500) and Coca-Cola (KO, Fortune 500) reported weaker revenue that missed forecasts. Crude prices have tended to move in tandem with the stock market lately, because it is considered a barometer for the overall economy and a gauge for when oil demand will recover.

The currency market also pressured oil prices, as the dollar reversed direction to gain versus the euro and the yen. A firmer greenback tends to sink crude because oil is priced in dollars around the world.

According to Reuters, OPEC Secretary-General Abdullah al-Badri said on Tuesday that oil prices at $80 a barrel were "a bit high." To top of page

Features
They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
Cool cars from the 2015 Geneva Motor Show These are some of the stand-out cars and trucks on display at the 2015 Geneva Motor Show. More
Yahoo: 20 years of hits and flops The company that once was Google turns 20. We look back at the many, many brands it has cycled through. Remember Geocities? Broadcast.com? More
10 big dot-com flops Remember Pets.com? The Nasdaq is roaring back towards its all-time high. Here are some of the biggest dot-com busts from the last time the Nasdaq topped 5,000. More
Worry about the hackers you don't know 
Crime syndicates and government organizations pose a much greater cyber threat than renegade hacker groups like Anonymous. Play
GE CEO: Bringing jobs back to the U.S. 
Jeff Immelt says the U.S. is a cost competitive market for advanced manufacturing and that GE is bringing jobs back from Mexico. Play
Hamster wheel and wedgie-powered transit 
Red Bull Creation challenges hackers and engineers to invent new modes of transportation. Play