By Christian Schmollinger Nov. 5 (Bloomberg) -- Crude oil fell in New York as investors judged yesterday's 10 percent gain as excessive and the dollar rose following Barack Obama's election victory, causing traders to sell out of commodities. Gold also declined in Asia as oil's retreat reduced the appeal of commodities as an alternative asset. Obama, who favors a windfall-profit tax on petroleum producers and boosting renewable energy, was elected the 44th U.S. president. The dollar climbed 1.3 percent against the euro. ``It should be bearish for oil,'' said Anthony Nunan, an assistant general manager for risk management at Mitsubishi Corp. in Tokyo. ``He's made no bones about the fact he wants to wean the U.S. off Middle East oil and he's willing to put more effort into renewables like photovoltaic and wind power.'' Crude oil for December delivery declined as much as $3.39, or 4.8 percent, to $67.14 a barrel on the New York Mercantile Exchange. It was at $67.50 a barrel at 4:21 p.m. Singapore time. Prices, which have tumbled 54 percent since reaching a record $147.27 on July 11, are down 28 percent from a year ago. ``It was a big rally yesterday so we're seeing a bit of profit-taking today,'' said Toby Hassall, an analyst at Commodity Warrants Australia Ltd. in Sydney. ``A victory for Obama provides a positive tone to financial markets on the whole.'' Futures rose $6.62, or 10 percent, to $70.53 a barrel yesterday, the highest settlement since Oct. 21. It was the biggest one-day gain since Sept. 22. Oil prices were boosted yesterday by the biggest presidential-election day rally in the U.S. stock markets since Ronald Reagan won a second term 24 years ago and a 2.6 percent drop in the dollar against the euro. `Irrational Market' ``It's a bit irrational with no one looking at the fundamentals and looking at the stock market as an indication of how the economy is doing,'' said Clarence Chu, a trader at options marketers Hudson Capital Energy in Singapore. ``When the dollar falls, people are like buy, buy, buy.'' The Reuters/Jefferies CRB Index of 19 raw materials climbed 5.3 percent to 278.22 yesterday, the highest since Oct. 22. The gauge lost 42 percent since reaching a record in July as the credit crunch choked worldwide growth. Bullion for immediate delivery fell as much as 1.6 percent, or $12.10, to $751.15 an ounce today, before trading at $752.05 at 4:28 p.m. in Singapore. Saudi Arabia has cut crude supplies to some customers ``significantly'' after last month's Organization of Petroleum Exporting Countries meeting, Reuters reported, citing people it didn't identify. OPEC decided at a meeting in Vienna last month to cut the production target for 11 of the group's members by 1.5 million barrels a day, from 28.8 million barrels a day. Nigeria Cuts Algeria's energy ministry ordered state-owned oil company Sonatrach to lower output by 71,000 barrels a day as of Nov. 1, state-run Algerian Press Service reported. Nigeria has canceled at least four crude cargoes originally scheduled to load in November and December after Africa's biggest producer said it would comply with the output cut announced by OPEC last month. Brent crude oil for December settlement fell as much as $3.48, or 5.2 percent, to $62.96 a barrel on London's ICE Futures Europe exchange. It was at $63.15 a barrel at 4:29 p.m. Singapore time. The contract increased $5.96, or 9.9 percent, to settle at $66.44 a barrel yesterday, the highest since Oct. 21. Oil inventories probably rose 1 million barrels from 311.9 million barrels in the week ended Oct. 24. Refinery use probably rose to the highest since August. The Energy Department will report weekly inventory statistics at 10:35 a.m. Washington time today. To contact the reporter on this story: Christian Schmollinger in Singapore at christian.s@bloomberg.net.

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