Oil falls in Asian trade

Oil fell slightly in Asian trade today on profit-taking after overnight gains that were fuelled mainly by a bigger-than-expected drop in US crude stocks, analysts said.

New York's main contract, light sweet crude for October delivery fell seven cents to $72.44 a barrel.

Brent North Sea crude for November delivery was five cents lower at $71.62.

Data released yesterday by the US Department of Energy showed the country's crude stocks dropped by 4.7 million barrels in the week to September 11. Analysts polled by Dow Jones Newswires had forecasted an average decline of 2.5 million barrels.

The sharper-than-expected drop in crude stocks was seen as an indication that oil demand was improving in the US, the world's biggest energy user.

Crude prices, which closed firmer yesterday, also received a boost from positive US data showing the world's biggest economy was recovering from a recession that started in late 2007.

The drop in inventories "caused the rally in crude oil but in addition to that, the reaction of the stock market based on economic data is really what made the oil market rally during the day," said Andy Lipow of Lipow Oil Associates.