Crude Falls as Traders Shorten Up

Updated from 1:53 p.m. EDT

Oil prices dropped Friday as traders exited long positions ahead of the weekend. OPEC is scheduled to meet in Vienna on Monday to decide whether it will increase its formal production quotas by 500,000 barrels a day.

Crude for October delivery closed down $1.75 to $63 a barrel on Nymex. Gasoline futures dropped 11 cents, or 6%, to $1.78 a gallon.

"We are seeing a dropoff in demand coupled with a seasonal weakness in gasoline," says Phil Flynn, market analyst at Alaron Trading. "The selloff was also triggered by the lowest consumer confidence number in 13 years." ...