Crude Oil Snaps Five Days of Gains as Investors Lock in Profits - BusinessWeek

Dec. 30 (Bloomberg) -- Crude oil snapped five days of gains as investors sold contracts to lock in profits at the end of the year and the dollar traded near a two-month high against the yen.

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Oil had climbed 8.8 percent in the past five days and surged 77 percent this year on signs of a global economic recovery. U.S. consumer confidence improved in December for a second month and the dollar is forecast to strengthen against the euro for a third day, reducing the appeal of commodities as an inflation hedge. “After strong gains over the past year, there’s a propensity to lock in profits and reposition for 2010,” said Mark Pervan, a senior commodity strategist at ANZ Banking Group Ltd. in Melbourne. “Now, I think you’re going to see sideways movement.” Crude oil for February delivery fell as much as 35 cents, or 0.4 percent, to $78.52 a barrel in electronic trading on the New York Mercantile Exchange, and traded at $78.80 at 9:43 a.m. Singapore time. Futures, which have tripled in the past decade, closed yesterday at the highest settlement since Nov. 18.

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