Crude Oil Falls a Third Day as Demand Fails to Justify Gains - Bloomberg

By Ann Koh Oct. 26 (Bloomberg) -- Crude oil fell for a third day inNew York after four weeks of gains pushed prices above levelsjustified by a recovery in demand.

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Oil also dropped below $80 a barrel after Nigerian rebelsordered a cease-fire and talks to end a conflict that has cutoutput from Africa’s biggest oil producer. “Around $80 a barrel is a price normally associated withquite tight markets and I don’t regard the oil market as tightat the moment,” said David Moore , a commodity strategist atCommonwealth Bank of Australia Ltd. in Sydney. “Maybe peopleare just becoming a bit more cautious about the oil price atsuch high levels.” Crude oil for December delivery fell as much as 93 cents,or 1.2 percent, to $79.57 a barrel on the New York MercantileExchange, and was at $79.99 at 3:43 p.m. Singapore time. Futureshave gained 79 percent this year and touched a one-year high of$82 a barrel on Oct. 21. Prices have climbed 22 percent in thefour weeks to Oct. 23.

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