Oil falls after a rally amid tight supply

Tokyo-Sana

Oil prices fell today after a rally driven by strong demand in the United States, the largest consumer of oil and its derivatives in the world.

And Reuters news agency reported that US West Texas Intermediate crude futures fell 21 cents, or 0.3 percent, to $83.55 a barrel, after closing in the previous session, unchanged, after approaching record high levels.

Brent crude futures contracts were not better than the previous ones, as they also fell 20 cents, or 0.2 percent, to $85.79 a barrel, after rising 0.5 percent yesterday.

While China's coal and energy markets declined somewhat after the government's intervention, energy prices remain high globally with the onset of winter in the northern hemisphere.

"The outlook for a cooler month ahead has energy traders bracing for a very tight market with unprecedented demand this winter," Edward Moya, chief market analyst at financial services broker Oanda, said in a note.