Crude Oil prices fall back before the US inventory report (AP) (29-05-2008)

BANGKOK, Thailand (AP) -- Oil retreated back toward $130 a barrel Thursday in Asia as the U.S. inventory report is expected to show that of crude and petroleum product stockpiles grew last week.

Volatility continues to rule, however. Crude oil futures fell below $126 a barrel Wednesday in New York before recovering to finish just above $131, on persistent troubles in Nigeria, concern regarding falling gasoline demand and dollar volatility

Midday in Singapore, the light, sweet crude contract for July delivery was down 71 cents at $130.32 a barrel in electronic trade on the New York Mercantile Exchange.

The contract finished the previous session at $131.03, up $2.18, after spending much of the day swinging between gains and losses. At its low in the floor session Wednesday, oil was more than $9 off the record high it hit last week above $135 a barrel.

The reversal in Asia from the floor session's close came with a renewed strengthening of the dollar and ahead of the U.S. Energy Department's inventory report, to be released later Thursday.

In other Nymex trading, heating oil futures fell 1 cent to $3.8143 a gallon while gasoline prices dropped 1.01 cents to $3.4375 a gallon. Natural gas futures rose 4 cents to $12.035 per 1,000 cubic feet.

July Brent crude fell 81 cents to $130.12 a barrel on the ICE Futures exchange in London.

  Source AP