Oil slid from the highest close in two weeks in New York amid speculation that its biggest gain in more than a month was excessive. Tropical Storm Ernesto slowed as its heads westward in the Caribbean.
Futures slipped as much as 0.5 percent after surging 4.9 percent on Aug. 3, the most since June 29. Oil’s advance halted after reaching a technical resistance level. Prices finished last week with a gain of 1.4 percent after U.S. payrolls rose more than estimated and service industries expanded at a faster pace. Ernesto, located about 220 miles east of the Nicaragua and Honduras border, had winds of about 50 mph, down from 60 mph on Aug. 4, according to the U.S. National Hurricane Center.
“The previous peak of around $93 for West Texas looms as a bit of a psychological resistance level for the market,” said Ric Spooner, a chief market analyst at CMC Markets in Sydney. The weakening of tropical storm Ernesto “takes away a potential supply disruption,” he said.
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