| GEO Business|
| Oil falls to near $84, extending 5 days of losses|
| Updated at: 1001 PST, Tuesday, April 13, 2010|
SINGAPORE: Oil prices fell for a fifth day to near $84 a barrel Tuesday in Asia as traders mulled whether a slowly recovering U.S. economy justified the recent two-month, 25 percent crude rally.
Benchmark crude for May delivery was down 24 cents to $84.10 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract lost 58 cents to settle at $84.34 on Monday.
Crude jumped to above $87 a barrel last week from $69 in early February on investor expectations tepid U.S. crude demand will eventually catch up with a recovering economy. U.S. crude inventories have remained high, but some analysts were cheered by signs global economic growth is strengthening.
“Recent economic news has been reassuring, reinforcing the notion of a broadening recovery which we expect will continue to support energy and industrial metals prices going forward,'' Goldman Sachs said in a report.
Goldman said it expects crude to rise to $94.50 a barrel in three months and $99 in 12 months.
In other Nymex trading in May contracts, heating oil was steady at $2.218 a gallon, and gasoline held at $2.295 a gallon. Naturalgas fell 1.4 cents to $3.994 per 1,000 cubic feet.
In London, Brent crude was up 3 cents at $84.80 on the ICE futures exchange.