NEW YORK (
) -- The dollar goes down and the price of crude goes up, right? Wrong -- at least for today anyways, as oil futures fell below $70 on profit-taking and renewed fears that prices aren't aligning with demand realities.
On Friday, the front-month contract for light, sweet crude tumbled $2.65 to settle at $69.29 on the New York Mercantile Exchange. However, oil tracked higher for four straight days before today and finished nearly 1.9% higher for the week compared to last Friday's settlement at $68.02.
More than a few reports today were pointing the finger at demand metrics. Yesterday, the U.S. Energy Information Administration said oil supplies plunged by a more-than-expected 5.9 million barrels last week, while the International Energy Agency boosted its oil demand forecasts for this year and next.
Still, a few reports pointed out that the EIA's other news about a sharp jump in U.S. refined product supplies like gasoline and distillate fuels, along with still higher supplies for all, worried investors about the underlying fundamentals for the recent gains.
To cloud the picture further, the weakening greenback, which has helped power much of oil's climb of late, dropped to a new low against the euro today.
Most of the oil majors tracked lower by the closing bell today.
finished at $69.98, down 67 cents, while
lost 70 cents at $70.75.
also finished lower, losing 0.9% and 0.8% each.
Among other energy movers, natural gas players
added 1.3% and 3.5%, respectively.
American depositary shares for Spanish integrated operation
, which earlier confirmed what could amount to one of the
largest natural gas finds in the world, closed at $25.87, up 26 cents or 1%.
-- Written by Sung Moss in New York
Follow TheStreet.com on
and become a fan on
Copyright 2009 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.