Crude Oil Futures Fall to $71.89

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rude oil futures fell $1.16 to $71.89 a barrel on the New York Mercantile Exchange, the lowest level since June, Bloomberg reported Wednesday.

Milder economic data contributed to the slide in prices. The core consumer price index, which excludes volatile food and energy prices, gained 0.2%, the smallest increase since February, while housing starts slid 2.5% to an annual rate of 1.795 million.

Supply concerns eased on news of the ceasefire between Israel and Hezbollah and signals from Iran that it is ready to discuss suspension of uranium enrichment with the European Union, Bloomberg said.

Meanwhile, the Organization of Petroleum Exporting Countries reduced its forecast for oil demand in 2006 by 80,000 barrels a day to 1.3 million barrels.