LONDON: Oil prices fell below $72 a barrel on Tuesday, down for a fifth day after weak US economic data spread gloom about the ability of top consumer the United States to work through record stocks.

US crude prices fell $1.28 to $71.82 a barrel by 1411 GMT, after earlier sliding to $71.45, leaving prices at the lowest level since early July.

Prices extended losses intraday after sales of previously owned US homes dropped more steeply than expected in July to their lowest pace in 15 years, an industry group said.

ICE Brent crude futures shed $1.10 by the same time to $72.52 a barrel, maintaining its premium to the rival benchmark established last week.

On the supply side, US crude oil inventories are forecast to have risen by 800,000 barrels last week, according to a preliminary Reuters poll of eight analysts ahead of American Petroleum Institute data at 2030 GMT and US government data on Wednesday.

Typically stocks fall through the summer driving season, but they instead rose to a record high in the United States in the week to Aug 13.

Oil prices have fallen by around 13 percent since hitting a three-month high of $82.97 a barrel in early August as evidence has mounted that the fuel demand recovery is likely to be protracted while stocks have swelled. reuters

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