Oil falls to $82
LONDON: Oil fell on Wednesday for the first day in five as a rally that powered prices to three-month highs near $83 a day earlier lost steam, with little reaction to an attack on Iranian President Mahmoud Ahmadinejad.
Analysts said the market was cautious on moving on the initial reports of the attack.
“Prices haven”t moved today but we”ve just had a very strong rally,” said Paul Harris, head of natural resources risk management at Bank of Ireland. “Geopolitical risk from the Middle East is broadly priced in.” “I expect that any backlash there might be from Ahmadinejad will be far more important to the oil market than the initial attack itself,” he added.
U.S. crude for September fell by 53 cents to $82.02 a barrel by 5:32 a.m. ET, 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.
Front-month ICE Brent dropped 74 cents to $81.4.
The dollar hovered near a three-month trough against the euro following Tuesday”s data showing U.S. consumer spending and incomes were flat in June and the index for pending sales of previously owned homes fell to a record low.
“I don”t think there is a fundamental justification for prices above $80,” said Christophe Barret, oil analyst at Credit Agricole CIB in London.
The increase in gasoline stocks and lower than expected fall in crude stocks announced by the American Petroleum Institute late on Tuesday pressured prices, he added.
U.S. Energy Information Administration government statistics on oil inventories and demand from the United States, the world”s biggest oil consumer, will be published at 10:30 a.m. ET.
“If we have a relatively slight drop in crude oil stocks it would indicate that crude stocks remain at very very high levels,” Barret said
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 on Wednesday.
A militant group linked to al Qaeda claimed that a suicide bomber from its organization was responsible for an explosion on a Japanese supertanker last Wednesday near the Strait of Hormuz.
Sreesanth puts India on the brink of an innings win
Sreesanth captured six out of the 13 Sri Lankan wickets that fell on the third day’s play at Kanpur to put India on the brink of a big innings victory. Sri Lanka in reply to India’s 642 crashed to 229 all out in their first innings and have already lost four wickets after following on!
The Lankans had a bad first session with Sreesanth picking up three wickets – opener Paranavitana (chasing a wide away going delivery to get caught for 38), Sangakkara (dragging a big cover drive onto the stumps to get bowled for 44) and Samaraweera (dragging his cut onto the stumps). Sri Lanka lost one more wicket in Angelo Mathews before lunch to get reduced to 138 for 5.
In the afternoon session, India had to wait for a long time before getting their next scalp as Mahela Jayawardene and Prasanna Jayawardene got a partnership going. It was again Sreesanth who provided the breakthrough by having Prasanna (39) caught behind playing a loose cut shot. Mahela Jayawardene (47) followed him back to the pavilion after a big shot off debutant spinner Pragyan Ojha failed to clear mid on. Sreesanth soon picked up his fifth wicket when he bowled left handed Rangana Herath with one that swung away from middle to hit the off stump. Sri Lanka went to Tea at 219 for 8.
The visitors got bowled out within no time after Tea and the follow on was enforced by Dhoni. Once again Sreesanth came good for India as he forced Dilshan to nick him behind. In a surprise move, Dhoni brought on Virender Sehwag in the 11th over and the part timer got rid of Paranavitana with an arm ball that had him lbw.
Sri Lanka got into horrible trouble moments later with Mahela Jayawardene getting run out due to a misjudgement of a single by Sangakkara. The Lankan Captain himself exited from the middle after dragging on a cut shot off Harbhajan onto the stumps. Sri Lanka finished the day’s play ar 57 for 4 in their second innings and know very well that nothing can save them from a big defeat tomorrow
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Sreesanth puts India on the brink of an innings win was first posted on November 26, 2009 at 8:16 pm.
