Oil Falls From 3-Week High as Stocks Futures Drop on Earnings

July 24 (Bloomberg) -- Oil fell from a three-week high as disappointing results from Microsoft Corp., American Express Co. and Amazon.com Inc. raised doubts about the economic recovery in the largest energy consuming nation.

Oil slipped as U.S. stock futures dropped from an eight- month high, after Microsoft posted profit and sales below analyst estimates and Amazon.com missed sales projections. U.S. fuel use averaged 18.6 million barrels a day the past four weeks, 4.8 percent less than the same period a year earlier, the Energy Department said July 22.

“Unless demand or demand expectations can really validate themselves, the price of oil might be a bit hesitant of following the stock market too high if it continues to rally,” said Mike Sander, an investment adviser with Sander Capital in Seattle.

Crude oil for September delivery dropped as much as 64 cents, or 1 percent, to $66.52 a barrel on the New York Mercantile Exchange. It was at $66.78 at 9:16 a.m. Sydney time. Yesterday, it rose 2.7 percent to settle at $67.16, the highest since July 1, after a gain in U.S. home purchases. Futures are 4.3 percent higher this week.

S&P 500 futures expiring in September declined 0.4 percent to 965.10 at 7:31 a.m. in Tokyo. Dow Jones Industrial Average futures dropped 31 points, or 0.3 percent, to 8,960. Yesterday, the Standard & Poor’s 500 Index advanced 2.3 percent to the highest level since President Barack Obama was elected on Nov. 4.

Brent crude for September settlement gained $2.04, or 3 percent, to $69.25 a barrel yesterday on the London-based ICE Futures Europe exchange.