Oil Falls From Record as U.S. House Passes Speculation Measure

June 27 (Bloomberg) — Crude oil fell in New York, retreating from the record $140.39 a barrel reached yesterday, as the U.S. House of Representatives approved a bill aimed at curbing excessive energy-market speculation.

The bill, which passed 402-19, would require the Commodity Futures Trading Commission to consider using position limits, or constraints on the size of the stake each speculative investor can own, and raising margin requirements, the amount of money required to trade. The vote came after the record was set.

“Sentiment may push prices down initially,” said Mark Pervan, a senior commodity strategist with Australia and New Zealand Banking Ltd. in Melbourne. “Curbing the speculative element might cause prices to fall so sentiment alone would suggest that we might see some profit-taking.”

Crude oil for August delivery fell as much as $1.03, or 0.7 percent, to $138.61 a barrel in after-hours trading on the New York Mercantile Exchange. It was at $139.38 a barrel at 9:35 a.m. Singapore time.

Bloomberg