Reply #2: Oil falls below $88 in Asia on profit-taking

[ozymandius]

KUALA LUMPUR, Malaysia – Oil prices fell Wednesday in Asia as traders locked in profits after crude rose above $90 a barrel for the first time in more than two years.

Benchmark oil for January delivery was down 86 cents to $87.83 a barrel at late afternoon Kuala Lumpur time in electronic trading on the New York Mercantile Exchange.

Traders will seek more clues on the strength of crude demand from U.S. government supply figures later Wednesday. The American Petroleum Institute's report Tuesday was mixed, showing a drawdown in crude oil stocks but a rise in distillate and gasoline inventories.

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