U.S. oil falls near $80 on Gulf production

New York -- U.S. oil prices fell near $80 a barrel Tuesday as oil companies resumed Gulf of Mexico production but analysts feared tighter U.S. crude supplies.

Light, sweet crude for November delivery fell 75 cents, or 0.93 percent, to $80.20 a barrel in mid-morning trading on the New York Mercantile Exchange.

Analysts said they expected a U.S. petroleum-stocks report Wednesday to show crude inventories fell by about 2 million barrels last week, their fifth consecutive weekly decline.

October natural gas rose 3 cents, or 0.5 percent, to $6.40 per 1,000 cubic feet.

Heating oil lost 1.36 cents, or 0.61 percent, at $2.217 a gallon.
Reformulated-gasoline blendstock for oxygen blending shed 1.94 cents, or 0.93 percent, to $2.064 a gallon.

AAA said the average U.S. retail regular unleaded gasoline price was $2.811 a gallon, up 0.2 cents from Monday's $2.809 a gallon.

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Copyright 2007 by United Press International.