Crude overvalued by around $20 a barrel," said Tim Evans,
crude overvalued by around $20 a barrel," said Tim Evans,
25-Aug-09 08:47 PM there's a feeling that the markets are heavy and sinking, with crude overvalued by around $20 a barrel," said Tim Evans,
NYMEX-Crude drops more than 3 pct on profit-taking Tue Aug 25, 2009 3:17pm EDT Email | Print | Share| Reprints | Single Page[-] Text [+] Market News Wall Street gains on housing, consumers and Bernanke | Video Oil tumbles from 10-month peak on profit-taking | Video Global stocks gain on Bernanke, data More Business & Investing News... Featured Broker sponsored link * U.S. consumer confidence up in August, above forecast * Wall Street up on housing, consumer sentiment * Dollar dips as upbeat data prompts riskier trades * Expanded poll forecasts crude stock drawdown NEW YORK, Aug 25 (Reuters) - U.S. crude oil futures ended more than 3 percent lower on Tuesday as traders booked profits after failure of the front-month October contract to break through resistance at $75. Prices fell as sell stops were triggered by a slew of long liquidations, traders said, despite positive home prices and consumer confidence reports, which had lifted Wall Street earlier. "There's been profit-taking in the energy markets ... there's a feeling that the markets are heavy and sinking, with crude overvalued by around $20 a barrel," said Tim Evans, energy market analyst at Citi Futures Perspective in New York. "On products, heating oil supplies are higher than a year ago and demand is weak. The same is true with gasoline, and with the summer driving season winding down, you can see how prices here can be under pressure," he added. Crude futures slumped ahead of weekly inventory data, due out at 4:30 p.m. EDT (2030 GMT) from the American Petroleum Institute and at 10:30 a.m. EDT (1430 GMT) on Wednesday from the U.S. Energy Information Administration. A forecast in an expanded Reuters poll of analysts on Tuesday showed that for the week to Aug. 21 crude inventories fell by 1.1 million barrels. [EIA/S] Analysts also forecast a 1.0 million-barrel drawdown in gasoline stocks and a 300,000-barrel increase in distillate supplies. In early trading, crude futures were up, lifted by Wall Street, which rose on supportive home prices data and on news that Fed Chairman Ben Bernanke will be renominated. [.N] U.S. equities also rose after the Conference Board said that its index of consumer attitudes climbed more than expected in August on an improved outlook on the job market and the economy.