Wednesday, April 5 2006 10:48 Hrs (IST) - World Time -

New York: Oil futures fell in global markets as profit-taking set in following sharp gains made the previous day, and as the market braced for the latest US inventory data.

New York's main contract, light sweet crude for delivery in May, slipped 51 cents to US$ 66.23 per barrel in closing trades yesterday (Apr 5, 2006).

In London, the price of Brent North Sea crude for May delivery lost 45 cents to close at US$ 66.39 per barrel.

Crude futures had leapt towards US$ 68 per barrel on Monday as investment funds flowed into the market amid tensions in major crude producers I$ 67.90 - the highest level since February 1. It closed 11 cents higher at 66.74.

Brent North Sea crude struck Monday US$ 67.93 dollars the highest peak for seven months and near its record of US$ 68.89, reached last August.

"Oil futures were a little lower on profit taking (yesterday) after the recent strong rise in prices to a seven-month high," analysts at the Sucden brokerage firm said.

Mike Fitzpatrick at Fimat USA said the market has been volatile due to increased speculation.

"Speculative interests returned after last week's end-of-the-quarter and -month profit-taking," he said.

"These entities have now become a fixture in the market and price movements are frequently attributed to them." Market participants were also gearing up for today's traditional weekly snapshot of crude inventories in the US.