Energy Sector Roundup: OPEC outlook dampens crude

Crude Prices Finish Under $135

Oil prices pulled back after OPEC questioned whether crude can remain so high through the rest of the year and the dollar gained against the euro.

Light, sweet crude for July delivery sank $1.88 to settle at $134.86 on the New York Mercantile Exchange.

At the gas pump, the average national price for a gallon of regular rose to a record $4.066 overnight, from $4.06 a day earlier, according to AAA and the Oil Price Information Service. Diesel also set a new record, rising 0.2 cent to $4.796 a gallon.

Gasoline futures settled at $3.4626, down by 6.34 cents on the Nymex. July heating oil futures slipped by 10.59 cents to settle at $3.8368 a gallon, and July natural gas futures fell 17.3 cents to settle at $12.625 per 1,000 cubic feet.

OPEC Sees "Little Support" for Current Prices

In its monthly market report, the Organization of Petroleum Exporting Countries said oil's recent volatility--the price for a barrel has swung back and forth in a $10 range over the past week alone--"reconfirms the view that current price levels do not reflect supply and demand realities."

Looking ahead to the second half of the year, the cartel said: "A review of the prospects ... also shows little support for prices to remain at current levels."

OPEC lowered its 2008 global demand forecast, saying it now expects demand to increase by 1.28 percent to an average of 86.9 million barrels per day, down from a previous forecast of 1.35 percent.