Crude oil was little changed as equities decreased and the dollar strengthened, undermining the need to use commodities as an alternative investment.

Oil dropped as much as 2.5 /cent after a disappointing forecast at Cisco Systems Inc. and lower than estimated earnings at Metro PCS Communications Inc. depressed stocks. U.S. crude-oil stockpiles climbed 1.67 million barrels to 349.5 million last week, an Energy Department reported as yesterday.

“There are plenty of reasons to be bearish in this market,” said Peter Beutel, president of trading advisory firm Cameron Hanover Inc. in New Canaan, Connecticut. A stronger dollar and a weaker equities market is “the combination we need to take a good look at fundamentals,” he said.

Crude oil for September delivery fell 5 cents to $71.92 a barrel at the 2:30 p.m. close of floor trading on the New York Mercantile Exchange. Prices have gained 61 percent this year. Oil dropped as low as $70.18 a barrel and increased as high as $72.42.

Prices also decreased as the dollar strengthened against the euro, undermining the need to use commodities as an inflation hedge. The U.S. currency rose to $1.4345 versus the euro from $1.4404 yesterday.

.

Tags:  barrel cisco crude oil decrease Dollar equity Price reinforce