NYMEX crude prices turn lower on pre-expiry trade, economy

US light crude oil futures changed gears and were lower Thursday afternoon as traders were closing out positions on the front-month September crude contract, which will expire at the close of the floor trading session.

A mixed bag of economic data earlier in the day raised more worries about the U.S. recovery, pressuring prices lower.

"It's expiration day volatility and the market is trying to decide if October crude should be at what would be a new 2009
high price at the rollover," said Phil Flynn, analyst at PFGBest Research in Chicago.

Heating oil and gasoline futures lost more ground, reacting to continuing tepid demand amid bulging supplies.

"The petroleum markets are seeing some light profit-taking following Wednesday's rally, but most traders seem to be
sticking around to see if there might be another bullish shoe to drop," said Tim Evans, analyst a Citi Futures Perspective in New York.

"The S&P 500 watchers will want to see if that market extends its own gains," Evans added.

Crude futures rose more than $3, nearly 5 percent, on Wednesday after the Energy Information Administration said that
crude oil stocks fell 8.4 million barrels last week. Distillate stocks dipped by 700,000 barrels and gasoline stocks fell 2.1 million barrels, the EIA said.

* On the New York Mercantile Exchange at 1:30 p.m. EDT (1730 GMT), September crude CLU9 was down 57 cents, or 0.79 percent, at $71.85 a barrel, trading $71.65 to $72.88.

* The day's high is the highest since the June 30 peak of $73.38, which was the highest intraday front-month crude oil
price since crude hit $75.69 on Oct. 21.

* NYMEX October crude CLV9 was down $1.14, or 1.53 percent, at $73.45 a barrel, trading $73.10 to $74.07.