Crude oil futures edged lower in choppy trading today, seesawing with Wall Street in a cautious market ahead of weekly oil inventory reports and with the US July crude contract approaching expiration at the end of the session.
Just before 5pm, expiring front-month US July crude was down 16 cents at $77.66 a barrel, having recovered from an earlier $76.53 low.
US crude for August, which will become the front month on Wednesday, was down 13 cents at $78.48 a barrel, having seesawed in tandem with the July contract.
In London, ICE Brent for August fell 7 cents to $78.75 a barrel.
China's weekend announcement that it would 'strengthen the flexibility' of the yuan had sent oil prices sharply higher yesterday on expectations of higher demand from Chinese consumers.
Analysts had interpreted the Chinese central bank's statement as a sign that Beijing was ready to adjust the dollar peg, which has been in place for two years, and allow the currency to rise. They said today that oil prices retreated on signs that any strengthening of the yuan would be gradual.
