Oil prices fall further
Friday, 8 February 2008
SINGAPORE, Feb 7 (AFP): World oil prices fell further in Asian trade today after the US government reported another rise in crude oil inventories against the backdrop of a possible US recession, dealers said.
New York's main oil futures contract, light sweet crude for delivery in March, was 18 cents lower at 86.96 dollars per barrel.
The contract closed down 1.27 dollars at 87.14 dollars Wednesday in the wake of the weekly US inventory report.
Brent North Sea crude for March delivery was seven cents lower at 87.71 dollars per barrel after settling 1.04 dollars lower at 87.78 dollars in London.
Prices slumped after the US Department of Energy said American crude oil inventories had jumped by 7.0 million barrels in the week ending February 1, the fourth straight rise in crude stocks.
The increase was much higher than analysts' consensus forecast which had predicted a gain of 2.2 million barrels.
US gasoline, or petrol, stockpiles increased by 3.6 million barrels, which also beat market expectations calling for a 1.7- million-barrel rise.
David Moore, a commodities strategist with the Commonwealth Bank of Australia in Sydney, said the inventory build comes against concerns for the United States economy.
On Wednesday Iran's Oil Minister Gholam Hossein Nozari said the country's crude output hit its highest peak since the 1979 Islamic revolution.
New York's main oil futures contract, light sweet crude for delivery in March, was 18 cents lower at 86.96 dollars per barrel.
The contract closed down 1.27 dollars at 87.14 dollars Wednesday in the wake of the weekly US inventory report.
Brent North Sea crude for March delivery was seven cents lower at 87.71 dollars per barrel after settling 1.04 dollars lower at 87.78 dollars in London.
Prices slumped after the US Department of Energy said American crude oil inventories had jumped by 7.0 million barrels in the week ending February 1, the fourth straight rise in crude stocks.
The increase was much higher than analysts' consensus forecast which had predicted a gain of 2.2 million barrels.
US gasoline, or petrol, stockpiles increased by 3.6 million barrels, which also beat market expectations calling for a 1.7- million-barrel rise.
David Moore, a commodities strategist with the Commonwealth Bank of Australia in Sydney, said the inventory build comes against concerns for the United States economy.
On Wednesday Iran's Oil Minister Gholam Hossein Nozari said the country's crude output hit its highest peak since the 1979 Islamic revolution.