Oil prices fell back towards $40 a barrel on Thursday despite lower US inventories as the market pondered whether a rally stoked by tight auto fuel supplies in the world's biggest oil consumer had run its course.
Weekly US stock data, showing no rise in US crude stocks and tighter gasoline, failed to ignite the climb in prices some traders had expected. US light crude futures lost 14 cents to $40.56 a barrel, after ending down 44 cents at $40.70 in US trade, more than $1 below last week's 21-year peak of $41.85.
London Brent shed another 12 cents to $36.96 a barrel, after closing 36 cents lower on Wednesday. "(US) stocks continued to surprise, but the market did not rally on the support from lower stocks.
This is proof that people are taking their money off.
They have taken in most of the bullish elements and priced them into the market," said Dennis Kongsiri, vice president at Mitsui & Co Energy Risk Management in Sydney.
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