WTI oil prices see saw as mixed US data spooks the market

WTI oil prices fell under the $76 a barrel mark on Thursday afternoon as a mixed set of positive and negative data fron the US had investors wondering which direction to take next.

US Light crude oil futures for August 2010 delivery was at $75.70, 16.00 GMT on the NYMEX. The August 2010 NYMEX crude options expire later today, as does the August 2010 Brent crude contract.

Crude oil futures began to drop shortly after making another attempt to broach the top of a trading range between $70 and $80 a barrel that’s constrained the market for two months.

Meanwhile, the Federal Reserve Bank of New York reported reduced growth in regional manufacturing activity, while US industrial production rose only 0.1% in June 2010.

“The market was looking for confirmation that growth was proceeding at a good pace, so when the numbers weren’t a lot better than expected some of the optimism that has pushed prices up caused some profit taking,” said Gene McGillian, analyst at Tradition Energy in Stamford, Connecticut.

WTI oil prices received little support from a weaker US dollar, which hit a two month low in currency market trading against the euro and a basket of major currencies.