UPDATE 7-Oil slips back as equities pare gains

Tue Jul 6, 2010 7:56pm GMT
 

* Oil slips after early gains, hit by equities pullback

* Weaker U.S. dollar helped boost oil early

* Coming up: API oil data 4:30 p.m. EDT Wednesday (Updates to close, adds details, background)

By Brian Ellsworth

NEW YORK, July 6 (Reuters) - U.S. oil prices fell for a sixth straight session on Tuesday, ending near a one-month low hit overnight, before a bounce tied to a stock market recovery, as the crude and equity markets gyrated in lock-step.

"The S&P 500 fell back from its highs and that caused crude to pull back and sell stops were triggered below $73 a barrel," said Robert Yawger, senior vice president, energy futures at MF Global in New York

U.S. crude for August delivery CLc1 fell 16 cents, or 0.22 percent, to close at $71.98 a barrel. It retreated from a $73.86 intraday peak, having earlier touched $71.09, the lowest price since June 8.

That decline came despite a decline in the dollar against a basket of currencies, which usually boosts crude by making prices for buyers using other denominations more attractive.

ICE Brent crude for August LCOc1 fell 2 cents to $71.45 a barrel.   Continued...

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