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 Monday, May 25 is Memorial Day in the United States and a public
holiday in much of Europe, leaving many markets closed.
"No one wants to hold open positions ahead of a long weekend so
books are being squared, bringing some consolidation," said Carsten
Fritsch, senior oil and commodities analyst at Commerzbank in
Frankfurt.
July Brent crude <LCOc1> was down 45 cents at $66.09 a barrel by
1030 GMT after closing up 2.3 percent on Thursday.
U.S. crude futures are experiencing their longest winning streak
since records began in 1983, helped by a drop in U.S. crude and
product stockpiles last week, reflecting better demand in the
world's largest oil consumer. [EIA/S]
U.S. crude for July <CLc1> was down 30 cents at $60.42 a barrel, but
poised to post gains for the 10th week in a row.
Data from the U.S. Energy Information Administration this week
showed a big decline in U.S. oil product stockpiles, suggesting
end-user demand has been strong.
"With U.S. travel expected to reach a 10-year high over Memorial
Day, according to AAA (American Automobile Association), product
inventory is expected to decline even further over coming weeks,"
ANZ analysts said in a report.
Violence in the Middle East has increased worries over the security
of oil supply from the region.
A suicide bomber blew himself up at a Shi'ite mosque in eastern
Saudi Arabia during Friday prayers, residents said, killing and
wounding several people.
Islamic State fighters have tightened their grip on the historic
Syrian city of Palmyra and have overrun Iraqi government defences
east of Ramadi, the provincial capital that they seized five days
earlier.
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Government forces have been routed across large parts of central
Iraq, the second largest oil exporter in the Organization of the
Petroleum Exporting Countries.
"The headlines from the Middle East have been worrying, although the
fighting probably won’t affect oil supply," said Commerzbank's
Fritsch.
U.S crude was also supported by expectations of lower shale oil
production, said Ric Spooner, chief analyst at CMC Markets.
U.S. crude stocks in delivery hub Cushing, Oklahoma, fell by almost
740,000 barrels between Friday and Tuesday, trade sources said,
citing a report by market intelligence firm Genscape.
(Additional reporting by Florence Tan in Singapore; Editing by Susan
Thomas and Ahmed Aboulenein)
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