Oil prices fell slightly today amid expectations that a US fuel supplies report will show increases in product inventories, but a decline in crude oil stockpiles.
The start of a general strike in Nigeria supported prices, although it was too early to see an effect on the industry.
Light, sweet crude for July delivery, which expires later today on the New York Mercantile Exchange, dropped 27 cents to $68.83 a barrel in electronic trading by midday in Europe. The August contract fell 23 cents to $69.31 a barrel.
The July contract had risen a penny yesterday to settle at $69.10, the highest close for a front-month contract since September 1st.
August Brent crude fell 34 cents to $71.50 a barrel on the ICE Futures exchange in London.
Analysts surveyed by Dow Jones Newswires expect the U.S. Department of Energy data to show gasoline stocks rose 1 million barrels last week. Distillate inventories, which include heating oil and diesel fuel, are expected to have increased 900,000 barrels.
Crude oil stocks are expected to have fallen 150,000 barrels last week. Refinery utilization is expected to have increased 0.6 percentage points.
'Refinery utilization is expected to increase after falling in the last three EIA reports,' said Vienna's PVM Oil Associates.
Market participants were especially attentive to refinery utilization rates. The rates sparked a rally late last week when the weekly inventory report showed use rates fell 0.4 percentage points in the week ended June 8th; analysts had expected a 0.8 point increase.