Oil prices slipped below $72 today as losses on Wall Street and gains in the US dollar dragged on commodities markets.
US crude for October fell 56 cents to $71.93 a barrel by 5.30pm. London Brent fell 54 cents to $71.97 a barrel.
The losses came as a report showing US consumer confidence at four-month lows pulled Wall Street stock indexes into negative territory, in turn pushing the dollar up against the euro.
Commodities markets have tended to move in tandem with equities and contrary to the greenback as investors look to stocks as a lead indicator of economic performance and buy resources as a hedge against inflation.
Oil's losses Friday reverse much of Thursday's $1.06 gain, made on the back of better-than-expected GDP and jobs data in the US, the world's largest energy consumer.
Supporting optimistic sentiment, data on Friday showed US consumer spending rose in July and the U.K. economy shrank slightly less than expected in the second quarter.
Unsold crude stored in tankers at sea continued to hang over the oil market but had declined since the spring.
Norway's Frontline, the world's biggest independent oil tanker shipping group, said it estimated that 40 to 45 very large crude carriers (VLCCs), or around ten percent of the world fleet, were storing crude oil.
Frontline had told Reuters on August 6 that around 50 VLCCs were being used to store around 100 million barrels of oil, down from a peak of around 60 VLCCs in April.
