Crude oil prices drop as traders take profits

World oil prices fell Thursday on profit-taking after a strong rally the previous day on the back of positive US data and the weak dollar, analysts said.World oil prices fell Thursday on profit-taking after a strong rally the previous day on the back of positive US data and the weak dollar, analysts said.New York's main contract, light sweet crude for January delivery, retreated 1.01 dollars to 76.95 dollars a barrel.Brent North Sea crude for January delivery sank 59 cents to 77.85 dollars a barrel.Trading was somewhat muted because of the Thanksgiving Day holiday in the United States."Crude trading remains a fairly dull affair at the moment," said VTB Capital analyst Andrey Kryuchenkov."The market continued rangebound ... within our target range between 75-80 dollars in London.

"The upside remained capped by demand concerns, while the broader market was dictating intraday direction on the back of the swinging dollar."

Crude futures surged higher on Wednesday, boosted by positive US economic data signaling recovery from recession that would spur demand, as well as the falling value of the greenback.Fresh US data showed jobless claims fell in the week ending November 21 to an adjusted 466,000, the lowest since September 2008.

A separate report showed consumer spending rose more than expected in October, and a third said sales of new homes rose at their strongest pace since September 2008. The overwhelming (market) sentiment was based on the economic news," said Andy Lipow, analyst at Lipow Oil Associates.But prices eased off Thursday as investors also switched focus to digest the weekly oil data from the US Department of Energy (DoE), analysts said.

"The inventory numbers were uninspiring so there was not anything to drive the market higher," added Jason Feer, Singapore-based regional vice president for energy analysts Argus Media."Demand fundamentals are still fairly weak."

The DoE said Wednesday in its weekly report that crude stocks rose by one million barrels in the week ended November 20 and gasoline reserves were up by the same amount.The weekly US report is closely watched by the market because the US is the world's biggest energy consumer. Meanwhile, OPEC member Algeria said the oil cartel was likely to maintain its production levels when the organisation meets next month in Angola.

"We are going to keep the same output level until we have a clearer vision of the world economic situation," Algeria energy minister Chakib Khelil said in a report carried by the APS news agency.The Organization of the Petroleum Exporting Countries (OPEC) supplies 40 percent of the world's crude.